Method and apparatus for providing multiple levels of participation in a lottery

ABSTRACT

A process provides a first price category in which a plurality of first price category lottery tickets can be purchased. The first price category indicates a first known distribution that can be won with lottery tickets in the plurality of first price category lottery tickets having a winning lottery number. Further, the process provides a second price category in which a plurality of second price category lottery tickets can be purchased. The second price category ticket indicates a second known distribution, distinct from the first known distribution, that can be won with lottery tickets in the plurality of second price category lottery tickets having the winning number. The second known distribution includes at least a portion of the revenue provided from the plurality of the first price category lottery tickets and at least a portion of the revenue provided from the plurality of the second price category lottery tickets.

RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.11/044,427, filed on Jan. 26, 2005, entitled MULTIPLE LEVELS OFPARTICIPATION IN A LOTTERY JACKPOT by Robert J. Wright, which is aContinuation-In-Part application of U.S. patent application Ser. No.10/987,474, filed on Nov. 12, 2004, entitled VIRTUAL LOTTERY by RobertJ. Wright, which is a Continuation-In-Part application of U.S. patentapplication Ser. No. 10/879,939, filed on Jun. 28, 2004, entitledLOTTERY TICKET DISPENSING MACHINE FOR MULTIPLE PRICED TICKETS BASED ONVARIABLE RATIOS by Robert J. Wright, which is a Continuation-In-Partapplication of U.S. patent application Ser. No. 10/876,390, filed onJun. 25, 2004, entitled MULTIPLE PRICING IN A LOTTERY BASED ON VARIABLERATIOS by Robert J. Wright, which is a Continuation-In-Part applicationof U.S. patent application Ser. No. 10/766,676, now U.S. Pat. No.6,935,948, filed on Jan. 27, 2004, entitled MULTIPLE PRICING SHAREDSINGLE JACKPOT IN A LOTTERY by Robert J. Wright; and all of which arehereby incorporated by reference in their entireties. This applicationis also a Continuation-In-Part application of U.S. patent applicationSer. No. 10/766,656, filed on Jan. 27, 2004, entitled A SYSTEM ANDMETHOD OF PROVIDING A GUARANTEE IN A LOTTERY by Robert J. Wright, andwhich is hereby incorporated by reference in its entirety.

BACKGROUND

1. Field

A system and method are disclosed which generally relate to gaming, andmore specifically to lotteries.

2. General Background

A lottery is generally a distribution of tokens such that a subset ofthe distributed tokens may win a prize. The token can be in the form ofa ticket. One of the most popular forms of lottery involves thedistribution of lottery tickets. Each lottery ticket includes a lotterynumber. After the lottery tickets have been distributed to the lotteryticket holders, the winning number is chosen. The usual method ofselecting the winning number involves a random selection of the winningnumber. A random number generator can be used to randomly select thewinning number. Some lottery systems require the ticket to have theentire number that is randomly selected while other lottery systemsrequire the ticket to have a superset of an ordered sequence of numbersthat are randomly selected.

Lotteries as normally used by jurisdictions reflect a pari-mutuel modelin which the prize is funded by a portion of the ticket sales. Onepotential problem with the pari-mutuel model is that a sufficient numberof tickets need to be sold in order to provide a reasonable lotteryprize. However, interest in purchasing lottery tickets is generallystimulated only when the prize becomes substantial. For instance, alarge number of lottery tickets are purchased in a $10 million dollarlottery, but a disproportionately large number of lottery tickets arepurchased in a $50 million dollar lottery.

In addition, traditional lotteries sell tickets for one price. If thereare multiple winners of a jackpot, the winners split the jackpot prize.

SUMMARY

In one aspect of the disclosure, a process is disclosed. The processprovides a first price category in which a plurality of first pricecategory lottery tickets can be purchased. The first price categoryindicates a first known distribution that can be won with lotterytickets in the plurality of first price category lottery tickets havinga winning lottery number. Further, the process provides a second pricecategory in which a plurality of second price category lottery ticketscan be purchased. The second price category ticket indicates a secondknown distribution, distinct from the first known distribution, that canbe won with lottery tickets in the plurality of second price categorylottery tickets having the winning number. The second known distributionincludes at least a portion of the revenue provided from the pluralityof the first price category lottery tickets and at least a portion ofthe revenue provided from the plurality of the second price categorylottery tickets. In addition, the process randomly selects the winninglottery number. The process also provides a first price categoryintra-shared distribution of the first known distribution if at leastone of the lottery tickets in the plurality of first price categorylottery tickets has a winning number, and the first price category isthe only price category having a winning ticket. Each of the winningtickets in the plurality of first price category lottery tickets sharesthe first known distribution according to a first price categoryintra-sharing distribution formula. Further, the process provides asecond price category intra-shared distribution of the second knowndistribution if at least one of the lottery tickets in the plurality ofsecond price category lottery tickets has a winning number, and thesecond price category is the only price category having a winningticket. Each of the winning tickets in the plurality of second pricecategory lottery tickets shares the second known distribution accordingto a second price category intra-sharing distribution formula. Theprocess also provides a divided first price category intra-shareddistribution of the first known distribution, a divided second pricecategory intra-shared distribution of the second known distribution, andan inter-shared distribution of the first known distribution if at leastone of the lottery tickets in the plurality of first price categorylottery tickets has a winning number and if at least one of the lotterytickets in the plurality of second price category lottery tickets has awinning number. Each of the winning tickets in the plurality of firstprice category lottery tickets shares the first known distributionaccording to the divided first price category intra-sharing distributionformula. Further, each of the winning tickets in the plurality of secondprice category lottery tickets shares the second known distributionaccording to the divided second price category intra-sharingdistribution formula. In addition, each of the winning tickets in theplurality of the second price category lottery tickets shares the firstknown distribution with each of the winning tickets in the plurality ofthe first price category lottery tickets according to an inter-sharingdistribution formula.

In another aspect of the disclosure, a process is provided. The processprovides a first price category in which a plurality of first pricecategory lottery tickets can be purchased. The first price categoryindicates a first known distribution that can be won with lotterytickets in the plurality of first price category lottery tickets havinga winning lottery number. Further, the process provides a second pricecategory in which a plurality of second price category lottery ticketscan be purchased. The second price category ticket indicates a secondknown distribution, distinct from the first known distribution, that canbe won with lottery tickets in the plurality of second price categorylottery tickets having the winning number. The second known distributionincludes at least a portion of the revenue provided from the pluralityof the first price category lottery tickets and at least a portion ofthe revenue provided from the plurality of the second price categorylottery tickets. The process randomly selects the winning lotterynumber. In addition, the process provides a first price categoryintra-shared distribution of the first known distribution if at leastone of the lottery tickets in the plurality of first price categorylottery tickets has a winning number, and the first price category isthe only price category having a winning ticket. Each of the winningtickets in the plurality of first price category lottery tickets sharesthe first known distribution according to a first price categoryintra-sharing distribution formula. In addition, the process provides asecond price category intra-shared distribution of the second knowndistribution if at least one of the lottery tickets in the plurality ofsecond price category lottery tickets has a winning number, and thesecond price category is the only price category having a winningticket. Each of the winning tickets in the plurality of second pricecategory lottery tickets shares the second known distribution accordingto a second price category intra-sharing distribution formula.

In yet another aspect of the disclosure, a process is provided. Theprocess provides a first price category in which a plurality of firstprice category lottery tickets can be purchased. The first pricecategory indicates a first known distribution that can be won withlottery tickets in the plurality of first price category lottery ticketshaving a winning lottery number. Further, the process provides a secondprice category in which a plurality of second price category lotterytickets can be purchased. The second price category ticket indicates asecond known distribution, distinct from the first known distribution,that can be won with lottery tickets in the plurality of second pricecategory lottery tickets having the winning number. The second knowndistribution includes at least a portion of the revenue provided fromthe plurality of the first price category lottery tickets and at least aportion of the revenue provided from the plurality of the second pricecategory lottery tickets. In addition, the process randomly selects thewinning lottery number. The process also provides an inter-shareddistribution of the first known distribution if at least one of thelottery tickets in the plurality of first price category lottery ticketshas a winning number and if at least one of the lottery tickets in theplurality of second price category lottery tickets has a winning number.Each of the winning tickets in the plurality of the second pricecategory lottery tickets shares the first known distribution with eachof the winning tickets in the plurality of the first price categorylottery tickets according to an inter-sharing distribution formula.

In another aspect of the disclosure, a process is provided. The processprovides a first price category in which a plurality of first pricecategory lottery tickets can be purchased. The first price categoryindicates a first known prize that can be won with lottery tickets inthe plurality of first price category lottery tickets having a winninglottery number. Further, the process provides a second price category inwhich a plurality of second price category lottery tickets can bepurchased. The second price category ticket indicates a second knownprize, distinct from the first known prize, that can be won with lotterytickets in the plurality of second price category lottery tickets havingthe winning number. The second known prize includes at least a portionof the revenue provided from the plurality of the first price categorylottery tickets and at least a portion of the revenue provided from theplurality of the second price category lottery tickets. In addition, theprocess randomly selects the winning lottery number. The process alsoprovides a first price category intra-shared distribution of the firstknown prize if at least one of the lottery tickets in the plurality offirst price category lottery tickets has a winning number, and the firstprice category is the only price category having a winning ticket. Eachof the winning tickets in the plurality of first price category lotterytickets shares the first known prize according to a first price categoryintra-sharing distribution formula. Further, the process provides asecond price category intra-shared distribution of the second knownprize if at least one of the lottery tickets in the plurality of secondprice category lottery tickets has a winning number, and the secondprice category is the only price category having a winning ticket. Eachof the winning tickets in the plurality of second price category lotterytickets shares the second known prize according to a second pricecategory intra-sharing distribution formula. The process also provides adivided first price category intra-shared distribution of the firstknown prize, a divided second price category intra-shared distributionof the second known prize, and an inter-shared distribution of the firstknown prize if at least one of the lottery tickets in the plurality offirst price category lottery tickets has a winning number and if atleast one of the lottery tickets in the plurality of second pricecategory lottery tickets has a winning number. Each of the winningtickets in the plurality of first price category lottery tickets sharesthe first known prize according to the divided first price categoryintra-sharing distribution formula. Each of the winning tickets in theplurality of second price category lottery tickets shares the secondknown prize according to the divided second price category intra-sharingdistribution formula. Each of the winning tickets in the plurality ofthe second price category lottery tickets shares the first known prizewith each of the winning tickets in the plurality of the first pricecategory lottery tickets according to an inter-sharing distributionformula.

In yet another aspect of the disclosure, a process is provided. Theprocess provides a first price category in which a plurality of firstprice category lottery tickets can be purchased. The first pricecategory indicates a first known prize that can be won with lotterytickets in the plurality of first price category lottery tickets havinga winning lottery number. Further, the process provides a second pricecategory in which a plurality of second price category lottery ticketscan be purchased. The second price category ticket indicates a secondknown prize, distinct from the first known prize, that can be won withlottery tickets in the plurality of second price category lotterytickets having the winning number. The second known prize includes atleast a portion of the revenue provided from the plurality of the firstprice category lottery tickets and at least a portion of the revenueprovided from the plurality of the second price category lotterytickets. In addition, the process randomly selects the winning lotterynumber. The process also provides a first price category intra-shareddistribution of the first known prize if at least one of the lotterytickets in the plurality of first price category lottery tickets has awinning number, and the first price category is the only price categoryhaving a winning ticket. Each of the winning tickets in the plurality offirst price category lottery tickets shares the first known prizeaccording to a first price category intra-sharing distribution formula.The process also provides a second price category intra-shareddistribution of the second known prize if at least one of the lotterytickets in the plurality of second price category lottery tickets has awinning number, and the second price category is the only price categoryhaving a winning ticket. Each of the winning tickets in the plurality ofsecond price category lottery tickets shares the second known prizeaccording to a second price category intra-sharing distribution formula.

In another aspect of the disclosure, a process is provided. The processprovides a first price category in which a plurality of first pricecategory lottery tickets can be purchased. The first price categoryindicates a first known prize that can be won with lottery tickets inthe plurality of first price category lottery tickets having a winninglottery number. Further, the process provides a second price category inwhich a plurality of second price category lottery tickets can bepurchased. The second price category ticket indicates a second knownprize, distinct from the first known prize, that can be won with lotterytickets in the plurality of second price category lottery tickets havingthe winning number. The second known prize includes at least a portionof the revenue provided from the plurality of the first price categorylottery tickets and at least a portion of the revenue provided from theplurality of the second price category lottery tickets. The process alsorandomly selects the winning lottery number. In addition, the processprovides an inter-shared distribution of the first known prize if atleast one of the lottery tickets in the plurality of first pricecategory lottery tickets has a winning number and if at least one of thelottery tickets in the plurality of second price category lotterytickets has a winning number. Each of the winning tickets in theplurality of the second price category lottery tickets shares the firstknown prize with each of the winning tickets in the plurality of thefirst price category lottery tickets according to an inter-sharingdistribution formula.

BRIEF DESCRIPTION OF THE DRAWINGS

The above-mentioned features of the present disclosure will become moreapparent with reference to the following description taken inconjunction with the accompanying drawings wherein like referencenumerals denote like elements and in which:

FIG. 1 illustrates a single priced lottery system that is based on apari-mutuel model.

FIG. 2 illustrates a shared multiple-priced single-pool lottery system.

FIG. 3 illustrates an example of a winnings table for the sharedmultiple-priced single-pool lottery system of FIG. 2.

FIG. 4 illustrates a process that can be used with the sharedmultiple-priced single-pool lottery system illustrated in FIG. 2.

FIG. 5 illustrates an example of a winnings table of a lottery havingtwo three-dollar ticket winners.

FIG. 6 illustrates an example of a winnings table of a lottery havingone three-dollar ticket winner and one one-dollar ticket winner.

FIG. 7 illustrates an example of a winnings table of a lottery havingtwo three-dollar ticket winners and two one-dollar ticket winners.

FIG. 8 illustrates an example of a winnings table of a lottery havingone three-dollar ticket winner, one two-dollar ticket winner, and oneone-dollar ticket winner.

FIG. 9 illustrates a probabilistic lottery system.

FIG. 10 illustrates a probabilistic software configuration that can beused with the probabilistic lottery system.

FIG. 11 illustrates a method for conducting a variable ratio basedmultiple-priced lottery system.

FIG. 12 illustrates a graph for a constant ratio between associations.

FIG. 13 illustrates a graph in which a variable ratio exists between atleast two associations.

FIG. 14 illustrates a graph in which two different variable ratiosexist.

FIG. 15 illustrates a lottery ticket dispensing machine.

FIG. 16 illustrates the internal components of the housing of thelottery ticket dispensing machine.

FIG. 17 illustrates a configuration in which the lottery ticketdispensing machine communicates with a server to receive a pricecategory and the associated distribution of the price category.

FIG. 18 illustrates a configuration in which the lottery ticketdispensing machine communicates with a server to transmit a verificationcode.

FIG. 19 illustrates a configuration in which a server sends data to thelottery ticket dispensing machine.

FIG. 20 illustrates a multi-priced distribution system. A first pricecategory input module provides a first price category to a multi-priceddistribution module.

FIG. 21 illustrates a multi-priced lottery system configuration forintra-shared distributions.

FIG. 22 illustrates an inter-shared lottery distribution system, whichencompasses the lottery distribution configuration of FIG. 21.

FIG. 23 illustrates a lottery ticket dispensing system.

FIG. 24 illustrates a virtual lottery system.

FIG. 25 illustrates the components of the first virtual lottery unit.

FIGS. 26A-26E illustrate the contents of the memory as data is receivedfrom the server.

FIG. 27 illustrates the virtual lottery unit.

FIG. 28 illustrates a process for the conducting the virtual lottery.

FIG. 29 illustrates another process for conducting the virtual lottery.

FIG. 30 illustrates a virtual lottery system with a progressive jackpotwherein the advertised jackpot is increased based on a portion of ticketsale revenue.

FIG. 31A illustrates the memory containing a plurality of virtuallottery ticket prices and a plurality of known percentages of aprogressive jackpot.

FIG. 31B illustrates the memory containing a plurality of virtuallottery ticket prices and a plurality of known percentages of aprogressive jackpot that has increased.

FIG. 32 illustrates the virtual lottery unit for a progressive jackpot.

DETAILED DESCRIPTION

A system and method are disclosed for a virtual lottery. A lotteryplayer can purchase a virtual lottery ticket as opposed to a paperlottery ticket. Further, the lottery player will find out instantlywhether the virtual lottery ticket has a winning lottery number ratherthan having to wait hours or even days for a drawing with respect to apaper lottery ticket. In essence, the virtual lottery player is providedwith a similar experience to playing in an actual lottery through anelectronic machine.

FIGS. 1-23 illustrate various embodiments of a lottery. In addition,FIGS. 24-28 illustrate the virtual lottery. The various featuresillustrated in FIGS. 1-23 can be implemented in the virtual lottery.

An overview of FIGS. 1-23 is now provided. After describing FIGS. 1-23,the disclosure explains how many of the features in FIGS. 1-23 can beimplemented in the virtual lottery as illustrated in FIGS. 24-28. FIGS.24-28 illustrate various embodiments of the virtual lottery. Finally,FIGS. 30-34 illustrate a virtual lottery with a progressive jackpot.

FIG. 1 illustrates a single priced lottery system 100 that is based on apari-mutuel model. A lottery operator 102 establishes the lottery. Thelottery operator 102 can be a jurisdiction such as a country, state,province, city, town, municipality, or any division or departmentthereof. Further, the lottery operator 102 can be a private organizationthat a jurisdiction hires to coordinate the lottery. The lotteryoperator 102 can also be a private organization that is not hired by ajurisdiction. The coordination involved can include establishment,maintenance, operation and oversight and/or winnings determination.

The lottery operator 102 can advertise that a lottery has a prize. Forexample, the lottery operator 102 can advertise that the lottery prizewill be a minimum of ten million dollars. The lottery operator 102provides the lottery prize from a jackpot 104. In one embodiment, thejackpot 104 is a variable jackpot that increases through allocation of aportion of the ticket sales. The lottery operator 102 can also provide afixed prize 106. In one embodiment, ticket holders 108 purchase ticketsat a price of $x per ticket from a ticket seller 110. The ticket sellerthen sends the ticket numbers on each of the tickets to the lotteryoperator, typically through a computer network 102. If one of the ticketholders 108 wins the lottery, the lottery operator 102 disburses thejackpot 104 to the ticket holder 108. On the other hand, if multipleticket holders 108 win the lottery, the multiple ticket holders with thewinning tickets split the jackpot 104. For instance, FIG. 1 illustratestwo ticket holders 108 winning the lottery. The lottery operator 102then splits the jackpot 104 and distributes half of the jackpot to eachof the ticket holders 108.

The lottery operator 102 can also distribute a fixed prize 106. A ticketholder 108 can win a fixed prize that the ticket holder 108 does nothave to share with other ticket holders 108. For instance, if multipleticket holders 108 won the fixed prize 106, the lottery operator 102would distribute the fixed prize 106 in its entirety to each of themultiple ticket holders 108 that won the fixed prize 106. In oneembodiment, the multiple pricing method and system can be applied to thefixed prize 106. The ticket holder 106 can qualify for the higher fixedprize 106 by purchasing a higher priced ticket.

In one embodiment, the lottery operator 102 can use a random numbergenerator (not shown) to determine the winning number. In anotherembodiment, the lottery operator 102 can use a ball draw machine torandomly select the winning number.

One of the difficulties of the single priced lottery system 100 is thatthe single priced lottery system 100 does not optimize the amount spentby a customer and the size of the jackpot 104. Some ticket holders 108may want to purchase a less expensive lottery ticket even if theassociated prize is relatively small. Further, some ticket holders 108may not wish to purchase a lottery ticket unless the jackpot 104 is verylarge. These ticket holders 108 may be willing to pay more for a lotteryticket that provides a larger prize. Further, some ticket holders 108generally buy lottery tickets in almost any lottery regardless of thesize of the jackpot 104. The single priced lottery system 100 does notoptimize the performance of a lottery since it does not create anoptimal incentive for the customer to spend more and thereby increasethe revenue of the lottery.

FIG. 2 also illustrates that a ticket holder 206 can purchase a lotteryticket in a second price category. For instance, the second pricecategory can be lottery tickets purchased for $y. The second pricecategory is associated with a second distribution of a lottery prizethat can be won. For example, the ticket holder 206 may have purchasedthe lottery ticket for two dollars in order to win fifty percent of thejackpot. In one embodiment, if the only winning lottery ticket orwinning lottery tickets are in the second price category, then thesecond distribution is distributed according to a second price categoryintra sharing distribution formula. In one embodiment, the second pricecategory intra sharing distribution formula requires an evendistribution among all the winners in the second price category. In theexample above, if two ticket holders 206 have winning ticket numbers,the two ticket holders 206 share the applicable distribution evenly. Inthe example, the second distribution of the prize or in combination ofthe first and second distributions was fifty percent. Therefore, the twoticket holders 206 would each receive twenty five percent of the prize.In one embodiment, if the ticket holder 206 is the only winning ticketin the lottery, the second price category intra sharing distributionformula provides the entirety of the second distribution of the prize tothe ticket holder 206. In this example, the ticket holder 206 wouldreceive fifty percent of the jackpot.

In one embodiment, the progressive model can be applied so that eachprice category benefits. If the jackpot increases in size, potentialwinnings for each price category can increase because the jackpotincreases.

In one embodiment, if the only winning lottery ticket or winning lotterytickets are in the first price category, then the first distribution isdistributed according to a first price category intra sharingdistribution formula. In one embodiment, the first price category intrasharing distribution formula requires an even distribution among all thewinners in the first price category. In the example above, if two ticketholders 204 have winning ticket numbers, the two ticket holders 204share the first distribution evenly. In the example, the firstdistribution of the prize was twenty-five percent. Therefore, the twoticket holders 204 would each receive twelve and one half percent of theprize. In one embodiment, if the ticket holder 204 has the only winningticket in the lottery, the first price category intra sharingdistribution formula provides the entirety of the first distribution ofthe prize to the ticket holder 204. In this example, the ticket holder204 would receive twenty-five percent of the prize. In one embodiment,the remaining seventy five percent of the jackpot 104 would be rolledover to increase the prize for subsequent drawings.

In another embodiment, the first price category intra sharingdistribution formula can be weighted. In one embodiment, the intrasharing distribution formula can be weighted in favor of the number oftickets purchased in the current drawing of the lottery. For example, iftwo ticket holders 204 are the only ticket winners in the lottery, oneof the ticket holders, 204 may have purchased one hundred lotterytickets in the current drawing whereas the other one of the ticketholders 204 may have only purchased one lottery ticket in the currentdrawing. A weighting can be established so that the ticket holder 204that purchased one hundred tickets in the current lottery can win, forexample, twenty percent of the prize whereas the ticket holder 204 thatpurchased one ticket in the current lottery can win, for example, fivepercent of the prize.

In yet another embodiment, the first price category intra sharingdistribution can be weighted in favor of previous ticket purchases. Forexample, if two ticket holders 204 are the only ticket winners in thelottery, one of the ticket holders 204 may have purchased one hundredlottery tickets in previous lotteries whereas the other one of theticket holders 204 may have purchased a lottery ticket for the firsttime. The first price category intra sharing distribution formula caninclude a frequent lottery variable that would provide a larger portionof the first distribution to the ticket holder 204 that previouslypurchased one hundred tickets. For example, the ticket holder 204 thatpurchased one hundred tickets may receive twenty percent of the prizewhereas the ticket holder 204 that only purchased one ticket may receiveonly five percent of the prize. This is only one example. The frequentlottery variable can also provide a small change. For instance, theticket holder 204 that purchased one hundred tickets may receivethirteen percent of the prize and the thicket holder 204 that purchasedone ticket may receive twelve percent prize. The lottery operator 102may find that use of the frequent lottery variable provides moreincentive to ticket holders 204 to participate in the lottery. The firstprice category intra sharing distribution formula can be determinedaccording to consumer demand. One of ordinary skill in the art willrecognize that a variety of formulae can be used for weighting thedistribution. The first price category intra sharing distributionformula can be a variable, a ratio, etc.

In one embodiment, the lottery prize is a jackpot. In alternativeembodiments, other types of prizes can be used. The prize is not limitedto jackpots.

FIG. 2 also illustrates that a ticket holder 206 can purchase a lotteryticket in a second price category. For instance, the second pricecategory can be lottery tickets purchased for $y. The second pricecategory is associated with a second distribution of a lottery prizethat can be won. For example, the ticket holder 206 may have purchasedthe lottery ticket for two dollars in order to win fifty percent of thejackpot. In one embodiment, if the only winning lottery ticket orwinning lottery tickets are in the second price category, then thesecond distribution is distributed according to a second price categoryintra sharing distribution formula. In one embodiment, the second pricecategory intra sharing distribution formula requires an evendistribution among all the winners in the second price category. In theexample above, if two ticket holders 206 have winning ticket numbers,the two ticket holders 206 share the applicable distribution evenly. Inthe example, the second distribution of the prize or in combination ofthe first and second distributions was fifty percent. Therefore, the twoticket holders 206 would each receive twenty five percent of the prize.In one embodiment, if the ticket holder 206 is the only winning ticketin the lottery, the second price category intra sharing distributionformula provides the entirety of the second distribution of the prize tothe ticket holder 206. In this example, the ticket holder 206 wouldreceive fifty percent of the jackpot.

In one embodiment, the second price category intra sharing distributionformula is weighted. The second price category intra sharingdistribution formula can be weighted in a similar manner as the firstprice category intra sharing distribution formula. One of ordinary skillin the art will recognize that a variety of formulae can be used forweighting the distribution. The second price category intra sharingdistribution formula can be a variable, a ratio, etc.

In one embodiment, if a ticket holder 204 and a ticket holder 206 havewinning lottery tickets, an inter sharing distribution formula is usedto determine how the ticket holder 204 and the ticket holder 206 shouldshare the jackpot. In one embodiment, the lottery operator 102 splitsthe first distribution so that the ticket holder 204 receives half ofthe first distribution and the ticket holder 206 receives half of thefirst distribution. The ticket holder 206 additionally receives thesecond distribution minus the first distribution. For example, if thefirst distribution is twenty five percent and the second distribution isfifty percent, the ticket holder 204 would receive twelve and one halfpercent. The ticket holder 206 would receive twelve and one half percentin addition to twenty five percent. Therefore, the ticket holder 206would receive thirty seven and one half percent. The inter sharingdistribution formula is not limited to an even distribution. In oneembodiment, the inter sharing distribution formula may be weighted tofavor the higher price category. In other words, the ticket holder 206may be rewarded for purchasing a higher priced ticket. For example, theticket holder 204 may only receive one third of the twenty five percentwith the ticket holder 206 receiving two thirds of the twenty fivepercent in addition to an entire twenty five percent.

Although each ticket price is associated with a percentage of thejackpot, the winnings come from a single jackpot. In the example above,even if only one ticket is purchased in the first price category, theticket holder 204 that has the winning number gets to receive twentyfive percent of a jackpot that may be funded primarily by higher ticketprice categories. Variations may occur from lottery to lottery in thenumbers of tickets purchased in each price category. The lotteryoperator 102 increases the chances that the jackpot will be sufficientto cover winnings in each of the price categories by having a singlepool from which disbursements are made for winnings in any of the pricecategories. The use of the single pool for multiple priced lotterytickets can be used independently of the sharing methodology discussedabove. However, the lottery operator 102 can further optimize theperformance of the lottery by using the single pool in conjunction withthe sharing methodology. Further, the intra sharing methodology can beused independent of the inter sharing methodology. However, the lotteryoperator 102 can optimize performance by using the intra sharingmethodology in conjunction with the inter sharing methodology.

FIG. 2 also illustrates that a ticket holder 208 can purchase a lotteryticket in a third price category. For instance, the third price categorycan be lottery tickets purchased for $z. The third price category isassociated with a third distribution of a lottery prize that can be won.For example, the ticket holder 208 may have purchased the lottery ticketfor three dollars in order to win one hundred percent of the jackpot104. In one embodiment, if the only winning lottery ticket or winninglottery tickets are in the third price category, then the thirddistribution is distributed according to a third price category intrasharing distribution formula. In one embodiment, the third pricecategory intra sharing distribution formula requires an evendistribution among all the winners in the third price category. In theexample above, if two ticket holders 208 have winning ticket numbers,the two ticket holders 208 share the third distribution evenly. In theexample, the third distribution of the prize was one hundred percent.Therefore, the two ticket holders 208 would each receive fifty percentof the prize. In one embodiment, if the ticket holder 208 has the onlywinning ticket in the lottery, the third price category intra sharingdistribution formula provides the entirety of the third distribution ofthe prize to the ticket holder 208. In this example, the ticket holder208 would receive one hundred percent of the jackpot.

In one embodiment, the third price category intra sharing distributionformula is weighted. The third price category intra sharing distributionformula can be weighted in a similar manner as the first price categoryintra sharing distribution formula. One of ordinary skill in the artwill recognize that a variety of formulae can be used for weighting thedistribution. The third price category intra sharing distributionformula can be a variable, a ratio, etc. In one embodiment, if theticket holder 204, the ticket holder 206, and the ticket holder 208 havewinning lottery tickets, a first triplet inter sharing distributionformula is used to determine how the ticket holder 204, the ticketholder 206, and the ticket holder 208 should share the firstdistribution of the jackpot. In one embodiment, the lottery operator 102splits the first distribution so that the ticket holder 204 receives onethird of the first distribution, the ticket holder 206 receives onethird of the first distribution, and the ticket holder 208 receives onethird of the first distribution. A second triplet inter sharingdistribution formula is used to determine how the ticket holder 206 andthe ticket holder 208 share the second distribution minus the firstdistribution. In one embodiment, the lottery operator 102 splits thesecond distribution so that the ticket holder 206 receives one half ofthe second distribution and the ticket 208 receives the other half ofthe second distribution. The ticket holder 208 additionally receives thethird distribution minus the second distribution. For example, if thefirst distribution is twenty five percent, the second distribution isfifty percent, and the third distribution is one hundred percent, theticket holder 204 would receive eight and one third percent. The ticketholder 206 would receive eight and one third percent in addition totwelve and one half percent. Therefore, the ticket holder 206 wouldreceive twenty and five sixths percent. Finally, the ticket holder 208would receive eight and one third percent in addition to twelve and onehalf percent in addition to fifty percent. Therefore, the ticket holder208 would receive seventy and five sixths percent.

The first triplet inter sharing distribution formula can require an evendistribution of the first distribution. However, in one embodiment, thefirst inter sharing distribution formula can be weighted. The ticketholder 206 can be given a greater portion of the first distribution thanthe ticket holder 204. Further, the ticket holder 208 can be given agreater portion of the first distribution than the ticket holder 206.However, different variations are possible. A volume lottery variable(based, for example on the number of tickets purchased or amount spenton tickets) can be used to determine weighting. In other words, theticket holder 204 could potentially receive the largest portion of thefirst distribution if the ticket holder 204 has purchased the mostlottery tickets. Further, the ticket holder 204 may receive the largestweighting of the first distribution to give incentive to the ticketholder 204 because the ticket holder 204 does not get to receive aportion of the second distribution or of the third distribution. Even ifthe ticket holder 204 spent an equivalent or a greater amount onpurchasing tickets than the ticket holder 206, the incentive of theticket holder 206 can be further increased over that of the ticketholder 204. Similarly, the ticket holder 206 may receive a greaterweighted portion of the second distribution than the ticket holder 208because the ticket holder 206 does not receive a portion of the thirddistribution or for other reasons related to the weighting formula. Inone embodiment, the incentive of the ticket holder 208 can be furtherincreased over that of the ticket holder 204. These weighted variationscan also be used with the second triplet inter sharing distributionformula.

The example above discusses the possibility of having one winning ticketfrom each price category. In one embodiment, multiple ticket winnersexist in some or all of the different price categories. A divided intrasharing distribution within each price category is applied so thatwinners in each price category split the winnings according to a dividedintra sharing distribution formula. In the example above, the ticketholder 204 received eight and one third percent. In one embodiment, afirst divided intra sharing distribution formula determines how to splitthe winnings for the first distribution. For instance, in the exampleabove, if two ticket holders 204 had winning numbers, one of the ticketholders 204 could receive approximately four and sixteen one hundredthspercent and the other ticket holder 204 would also receive approximatelyfour and sixteen one hundredths percent. In one embodiment, a seconddivided intra sharing distribution formula determines how to split thewinnings for the second distribution. For instance, in the exampleabove, if two ticket holders 206 had winning numbers, one of the ticketholders 206 would receive ten and five twelfths percent and the otherticket holder 206 would also receive ten and five twelfths percent. Inone embodiment, a third divided intra sharing distribution formuladetermines how to split the winnings for the third distribution. Forinstance, in the example above, if two ticket holders 208 had winningnumbers, one of the ticket holders 208 would receive thirty five andthree twelfths percent while the other one of the ticket holders 208would also receive thirty five and three twelfths percent. The dividedintra shared distributions do not have to be the same across pricecategories. Further, within price categories, the divided intra shareddistributions can be weighted as discussed above with respect to theintra sharing distributions.

Although, in the above discussion, the first price category wasassociated with the ticket holder 204, the second price category withthe ticket holder 206, and the third price category with the ticketholder 208, the ticket holders can be associated with different pricecategories. For instance, the first price category may be associatedwith the ticket holder 204 and the third price category may beassociated with the ticket holder 206. The inter sharing distributionvariable as discussed above could be used to share the jackpot if theticket holder 204 and the ticket holder 206 were the only winningtickets. For instance, the ticket holder 204 would receive one half oftwenty five percent. The ticket holder 206 would receive one half oftwenty five percent in addition to seventy five percent. Further, themethodologies discussed above can be extended to any number of pricecategories. For instance, there could be a fourth price category. Anynumber of price categories can be used.

In one embodiment, the shared multiple priced single pool lottery system200 can be used with a video lottery game. In another embodiment, theshared multiple priced single pool lottery system 200 can be used withonline lotteries that are provided on a network such as the Internet.

In one embodiment the shared multiple priced single pool lottery system300 can be computerized. Software modules can be used to establish andcoordinate the multiple priced single pool lottery system. The use ofcomputerized technologies can help facilitate calculating the sharingdistributions. Without the computerized technologies, the quantity ofthe calculations could be burdensome.

A first price category module can provide a first price category inwhich a plurality of first price category lottery tickets can bepurchased. Further, a second price category module can provide a secondprice category in which a plurality of second price category lotterytickets can be purchased. In addition, a random number selection modulecan randomly select the winning lottery number. The random numberselection module can be a random number generator, can be coupled to aball draw machine, or can simulate a ball draw machine. A first priceintra shared distribution module provides a first price category intrashared distribution of the first distribution of the prize if at leastone of the lottery tickets in the plurality of first price categorylottery tickets has a winning number. Further, a second price categoryintra shared distribution module provides a second price category intrashared distribution of the second distribution of the prize if at leastone of the lottery tickets in the plurality of second price categorylottery tickets has a winning number. Additional intra shareddistribution modules can be used for additional price categories.

In one embodiment, a divided first price category intra shareddistribution module provides a divided first price category intra shareddistribution of the first distribution of the prize. In addition, adivided second price category intra shared distribution module providesa divided second price category intra shared distribution of the seconddistribution. An inter shared distribution module provides an intershared distribution of the first distribution of the prize if at leastone of the lottery tickets in the plurality of first price categorylottery tickets has a winning number and if at least one of the lotterytickets in the plurality of second price category lottery tickets has awinning number.

FIG. 3 illustrates an example of a winnings table 300 for the sharedmultiple priced single pool lottery system of FIG. 2. For example, alottery can have a jackpot of ten million dollars. Lottery players canpurchase a one-dollar ticket, a two-dollar ticket, and a three-dollarticket. The one-dollar ticket only gives the ticket holder a chance atreceiving twenty five percent of the jackpot. Therefore, the one dollarticket holder could at best receive two million five hundred thousanddollars if the one dollar ticket holder did not have to share thejackpot with any other winners. The two-dollar ticket holder could atbest receive five million dollars if the two-dollar ticket holder doesnot have to share the jackpot with any other ticket holders. Finally,the three-dollar ticket holder could at best receive the full jackpot often million dollars if the three-dollar ticket holder does not have toshare the jackpot with any other ticket holders.

FIG. 4 illustrates a process 400 that can be used with the sharedmultiple priced single pool lottery system 200 illustrated in FIG. 2.The process 400 begins at a process block 402. The process 400 advancesto a process block 404 to provide a first price category. Further, theprocess 400 then advances to a process block 406 to provide a secondprice category. The process then advances to a process block 408 torandomly select the winning lottery number. The process 400 thenadvances to a decision block 410 where it is determined whether there isa winner in both the first price category and the second price category.If there is a winner in both the first price category and the secondprice category, then the process 400 advances to a process block 412where the first distribution of the jackpot prize is distributed throughan intra shared distribution as discussed in FIG. 2. The process 400then advances to a process block 414 where the second distribution ofthe jackpot prize is distributed through an intra shared distribution asdiscussed in FIG. 2. The process 400 then advances to a process block416 where the first distribution is distributed through an intershareddistribution of the jackpot so that the winning ticket holders in thesecond price category receive the appropriate share of the firstdistribution.

If the decision block 410 determines that there is not both a winner inthe first price category and a winner in the second price category, theprocess 400 advances to a decision block 418. At the decision block 418,the process 400 determines if there is a winner in the first pricecategory. If there is a winner in the first price category, the process400 advances to a process block 420 where the process 400 distributesthe jackpot prize through an intra shared distribution to a winner orwinners in the first price category. If the decision block 418determines that there is not a winner in the first price category, theprocess 400 advances to a decision block 422 to determine if there is awinner in the second price category. If there is a winner in the secondprice category, the process 400 advances to a process block 424 wherethe process 400 distributes the jackpot prize through an intra shareddistribution to winners in the second price category. If there is not awinner in the second price category, the process 400 determines thatthere are not any winners and the process ends at process block 426. Inone embodiment, there is a roll over. In one embodiment, theundistributed jackpot is used in a future draw. In one embodiment, theroll over includes a percentage of the jackpot for use in a future draw.In one embodiment, the lottery operator 102 takes a percentage of theticket sales revenue and adds that percentage to a future lotteryjackpot even if there is a winner in the present jackpot. The process400 can be extended to cover three price categories. Further, theprocess 400 can be extended to cover any number of price categories. Inone embodiment, the process 400 can be implemented on a computerreadable medium.

FIGS. 5 through 8 illustrate various examples of the multiple pricedsingle prize lottery system 200. FIG. 5 illustrates an example of awinnings table 500 of a lottery having two three dollar ticket winners.The jackpot is for ten million dollars. The distribution displays onethree dollar ticket winner sharing the ten million dollar jackpot withanother three dollar ticket winner through an intra sharingdistribution. One of the three dollar ticket winners receives fivemillion dollars at a sharing section 504. Further, the other threedollar ticket winner receives five million dollars at a sharing section506.

FIG. 6 illustrates an example of a winnings table 600 of a lotteryhaving one three dollar ticket winner and one one-dollar ticket winner.The jackpot is for ten million dollars. The distribution 602 displaysone three dollar ticket winner that shares the jackpot with oneone-dollar ticket winner. The one dollar ticket winner receives onemillion two hundred fifty thousand dollars at a section 604 through aninter sharing distribution. Further, the three dollar ticket winnerreceives one million two hundred fifty thousand dollars through an intersharing distribution at an inter sharing section 606. Finally, the threedollar ticket winner receives seven million five hundred thousanddollars at a section 608 through an intra shared distribution.

FIG. 7 illustrates an example of a winnings table 700 of a lotteryhaving two three dollar ticket winners and two one dollar ticketwinners. The jackpot is for ten million dollars. A distribution 702displays a one dollar winner receiving six hundred twenty-five thousanddollars at a section 704, a one dollar winner receiving six hundredtwenty-five thousand dollars at a section 706, a three dollar winnerreceiving six hundred twenty-five thousand dollars at a section 708, anda three dollar winner receiving six hundred twenty-five thousand dollarsat a section 710. The one dollar ticket winners receive their winningsthrough an intra shared distribution. Further, the three dollar ticketwinners receive a portion of the twenty five percent associated with thefirst price category through an inter shared distribution of half.Further, each of the three dollar ticket holders receives an additionalthree million seven hundred fifty thousand dollars through an intrashared distribution of the one hundred percent minus the twenty fivepercent.

FIG. 8 illustrates an example of a winnings table 800 of a lotteryhaving one three dollar ticket winner, one two dollar ticket winner, andone one-dollar ticket winner. The jackpot is for ten million dollars. Adistribution 802 displays a one dollar winner receiving eight hundredthirty three thousand dollars in a section 804 according to an intershared distribution of twenty five percent of the jackpot. The twodollar ticket holder also receives eight hundred thirty three thousanddollars in a section 806 according to the inter shared distribution oftwenty five percent of the jackpot. Accordingly, the three dollar ticketholder also receives eight hundred thirty three thousand dollars in asection 808 according to the inter shared distribution of twenty fivepercent of the jackpot. Further, the two dollar ticket holder receivesan additional one million two hundred fifty thousand dollars at asharing section 810 through an inter shared distribution of the seconddistribution. In addition, the three dollar ticket holder receives anadditional one million two hundred fifty thousand dollars at a sharingsection 812 through an inter shared distribution of the seconddistribution. Finally, the three dollar ticket holder receives anadditional five million dollars at a section 814 because the thirddistribution minus the second distribution equals fifty percent. In oneembodiment, the ticket holder in the highest price category receives thedistribution associated with the highest price category minus the nexthighest distribution with an inter sharing distribution. Intra sharingdistribution may occur in this remainder. Alternative embodiments willallow for different methodologies for calculating the remainder.

FIG. 9 illustrates a probabilistic lottery system 900. The multiplepriced shared lottery system 200 can be used in conjunction with theprobabilistic lottery system 900. A jackpot guarantor 902 assumes therisk that would normally not exist in a pure pari-mutuel lottery ormight be assumed in whole or in part by the lottery operator 920. In oneembodiment, the jackpot guarantor 902 is a private organization otherthan a jurisdiction. In another embodiment, the jackpot guarantor is apublicly held company other than a jurisdiction. The jackpot guarantor902 establishes a predetermined jackpot 940. In one embodiment, thepredetermined jackpot 204 is a very large prize that will entice ticketholders 108 that would not normally purchase a lottery ticket to do so.The lottery operator 920 can advertise the predetermined jackpot 204 inorder to stimulate and increase ticket sales. In one embodiment, thepredetermined jackpot 940 is unfunded. Instead, the jackpot guarantor902 sets the predetermined jackpot 940 at an amount that is large enoughso that there is a probability that the allocable prize portion ofticket sales will equal or exceed the predetermined jackpot 940. If theallocable prize portion of ticket sales is less than the predeterminedjackpot 940, the jackpot guarantor 902 assumes the risk for paying thedifferential between the ticket sales and the pre determined jackpot930.

In one embodiment, the jackpot guarantor 902 provides a guarantee to thelottery operator 920. In one embodiment, the guarantee provides that thejackpot guarantor 902 assumes the risk for paying the predeterminedjackpot if the allocable prize portion of ticket sales is not sufficientto cover the predetermined jackpot. In another embodiment, the guaranteeprovides that the jackpot guarantor assumes the risk of paying a portionof the predetermined amount of any secondary prizes that are won to theextent that the allocable prize portion of ticket sales is notsufficient.

In one embodiment, the jackpot guarantor 902 provides the guarantee inexchange for a stipulation. In one embodiment, the stipulation includesan obligation by the lottery operator 920 to provide a percentage ofrevenue generated from future ticket sales in exchange for theguarantee. In another embodiment, the stipulation includes an obligationby the lottery operator 920 to provide a fee in exchange for theguarantee.

The lottery operator 920 receives payments for ticket sales from thepoint of sale 106. Further, the lottery operator 920 receives ticketnumbers from the tickets sold to the ticket holders 108 from the pointof sale 906. The lottery operator provides the ticket numbers to thewinning number selector 910 to determine which are winning tickets.

In one embodiment, the jackpot guarantor 902 allocates the funds to thepre determined jackpot 940 pool. In one embodiment, the entity has setaside the large prize in a protected account to provide for payment.Therefore, the lottery operator can advertise a large prize becauseanother entity actually has set aside the large prize.

FIG. 10 illustrates a probabilistic software configuration 1000 that canbe used with the probabilistic lottery system in conjunction with themultiple pricing shared lottery system 200. As can be seen from FIG. 10,the probabilistic software configuration 1000 includes software forestablishing a guarantee for a pre determined lottery prize 940. Aguarantee transmission module 404 transmits the guarantee through anetwork 1008. The network 1008 can be a wide area network, a local areanetwork, the network, a wireless network, or any other network known toone of ordinary skill in the art. The guarantee transmission module 1004transmits the guarantee in exchange for a stipulation. In oneembodiment, the stipulation can be an obligation for a percentage offuture ticket sales. A stipulation reception module 1006 receives thestipulation through the network 408. In one embodiment, after thestipulation reception module 1006 receives the stipulation, thestipulation reception module 1006 transmits a confirmation that thestipulation was received to the guarantee transmission module 1004.

A guarantee reception module 1010 receives the guarantee from thenetwork 1008. In one embodiment, upon receiving the guarantee, theguarantee reception module 1010 provides an instruction to a stipulationtransmission module 1012. The stipulation transmission module 1012 thensends the stipulation through the network 1008. As discussed above, thestipulation reception module 1006 can receive the stipulation and sendthe confirmation to the guarantee transmission module 1004 that theguarantee has been sent and the stipulation, in exchange for which theguarantee was sent, has been received.

FIG. 11 illustrates a method 1100 for conducting a variable ratio basedmultiple pricing lottery system. The terms “variable” and “constant”will be explained in the following discussion.

In one embodiment, the multiple pricing system as discussed above can beimplemented with a constant ratio based system. For example, a lotteryplayer can purchase a one dollar ticket in the hope of winning a lotterydistribution of ten million dollars. The lottery player can alsopurchase a two dollar ticket in the hope of winning a lotterydistribution of twenty million dollars. A first association between theprice category of one dollar and the distribution of ten million dollarscan be the quotient of ten million divided by one, which equals tenmillion. Similarly, a second association between the price category oftwo dollars and the distribution of twenty million dollars can be thequotient of twenty million divided by two, which equals ten million. Aconstant ratio exists when the first association equals the secondassociation. In one embodiment, a lottery player can purchase one twodollar ticket as opposed to two one dollar tickets to avoid having topurchase multiple tickets.

In one embodiment, the multiple pricing system as discussed above can beimplemented to induce the purchase of higher priced lottery tickets. Forexample, a lottery player can purchase a one dollar ticket in the hopeof winning a lottery distribution of ten million dollars. The lotteryplayer can also purchase a two dollar ticket in the hope of winning alottery distribution of thirty million dollars. The first associationequals ten million (ten million divided by one) and the secondassociation equals fifteen million (thirty million divided by two). Avariable ratio exists because the first association does not equal thesecond association. In one embodiment, this variable ratio provides thelottery player with incentive to purchase a two dollar ticket. In oneembodiment, the lottery ticket holder can purchase the two dollar ticketas opposed to two one dollar tickets because the potential distributionis greater by purchasing the two dollar ticket as opposed to the two onedollar tickets.

In one embodiment, the association is evaluated by dividing the totaldistribution by the associated price category. If multiple players sharein that distribution, the association is still evaluated by dividing thetotal distribution by the associated price category. For instance, iftwo one dollar ticket holders win and share in the distribution of tenmillion dollars, the ten million dollars is the number that is dividedby the price category (one dollar) to determine the first association.In another embodiment, a ticket holder in another price category (e.g.,three dollar) shares the ten million dollar distribution with thewinners in the first price category. Even in this situation, the tenmillion dollars is the number that is divided by the price category (onedollar) to determine the first association. In one embodiment, thepotential distribution is the distribution that is divided by the pricecategory to determine the association.

The method 1100 begins at a process block 1102 where a first pricecategory is provided. A plurality of first price category lotterytickets can be purchased in the first price category. The method 1100then advances to a process block 1104 where a first distribution isestablished. The first distribution can be won with the lottery ticketsin the plurality of first price category lottery tickets having awinning lottery number. The method 1100 next advances to a process block1106 where a second price category is established. A plurality of secondprice category lottery tickets can be purchased in the second pricecategory. Finally, the method 1100 advances to a process block 1108where a second distribution is established so that a first associationhas a variable ratio with a second association.

FIG. 12 illustrates a graph 1200 for a constant ratio betweenassociations. The graph 1200 illustrates the potential distribution onthe y axis for a price category listed on the x axis. In one embodiment,a first point 1202 is plotted to illustrate that a potentialdistribution of ten million dollars can be won for a first pricecategory of one dollar tickets. The lottery ticket purchaser in thefirst price category may not actually win the full ten million dollarsif there are other winners in the first price category or other pricecategories for which the lottery ticket purchaser must share thedistribution. The second point 1204 is plotted to illustrate that apotential distribution of twenty million dollars can be won for a secondprice category for two dollar tickets. Finally, the third point 1206 isplotted to illustrate that a potential distribution of thirty milliondollars can be won for a third price category for three dollar tickets.

In order to determine a first association and a second association inthe graph 1200, any two of the plotted points can be chosen. Forinstance, the first point 1202 can be used to determine the firstassociation. In one embodiment, the first potential distribution of tenmillion dollars is divided by the first price category of one dollar toresult in the first association being ten million. The second point 1204can be used to determine the second association. In one embodiment, thesecond potential distribution of twenty million dollars is divided bythe second price category of two dollars to result in the secondassociation being ten million. The second association minus the firstassociation equals zero. In other words, the first association equalsthe second association. Therefore, a constant ratio exists between thefirst association and the second association. The graph 1200 illustratesthis constant ratio by displaying a straight line between the firstpoint 1202 and the second point 1204.

Any two points in the graph 1200 can be used to determine the firstassociation and the second association. For instance, the second point1204 can be used to determine the first association and the third point1206 can be used to determine the second association. In this instance,a constant ratio also exists between the first association and thesecond association. The first and the third points can also be used asthe first and the second associations. Alternatively, the points caneven be used backwards for associations. For instance, the third pointcan be the first association and the first point can be the secondassociation. Similarly, the second point can be the first associationand the first point can be the second association.

FIG. 13 illustrates a graph 1300 in which a variable ratio existsbetween at least two associations. A first point 1302 is plotted toillustrate a potential distribution of ten million dollars that can bewon in the first price category. A second point 1304 is plotted toillustrate a potential distribution of twenty million dollars that canbe won in the second price category. The first association is tenmillion (ten million dollars divided by the one dollar price category)and the second association is ten million (twenty million dollarsdivided by the two dollar price category). Therefore, a constant ratioexists between the first association and the second association.

In other words, an origin line 1308, which connects the origin with thefirst point 1302, has an equal slope to a first line 1310, whichconnects the first point 1302 with the second point, 1304. In oneembodiment, the slope does not have to be identical but ratherapproximately the same to be considered a constant ratio.

However, a variable ratio exists between the first association and thesecond association when the reference points are the second point 1304and a third point 1306. The first association is ten million (tenmillion dollars divided by the one dollar price category) and the secondassociation is twenty five million (fifty million dollars divided by thetwo dollar price category). The second association minus the firstassociation equals fifteen million (twenty five million minus tenmillion). A variable ratio exists between the first association and thesecond association when the reference points are the second point 1304and the third point 1306 because the second association minus the firstassociation is a positive number. The variable ratio is depicted in thegraph 1300 because a second line 1312 is displayed between the secondpoint 1304 and the third point 1306, which has a different slope thanthe origin line 1308 or the first line 1310. In one embodiment, avariable ratio would exist between the first association and the secondassociation if the second association minus the first association equalsa negative number.

The entire graph may be but is not necessarily entirely constant. Forinstance, the graph 1300 depicts a constant ratio and a variable ratio.A purchaser of a lottery ticket is provided with an added incentive topurchase a lottery ticket when a variable ratio exists. For instance,the purchaser can purchase a one dollar ticket to potentially win tenmillion dollars. The purchaser could purchase two one dollar tickets orone two dollar ticket to potentially win twenty million dollars. In oneembodiment, the purchaser receives a benefit in purchasing the twodollar ticket if the purchaser is not the sole winner and has to sharethe distribution. The two dollar ticket could potentially end up with alarger share than the two one dollar ticket winners according to thesharing formulae as discussed above. Whether a sole winner or a sharedwinner, the purchaser can win a potentially greater distribution bypurchasing one three dollar ticket rather than purchasing three onedollar tickets. If the purchaser was the sole winner, the purchaser ofthe three dollar ticket could potentially win fifty million dollars. Onthe other hand, if that purchaser instead purchased three one dollartickets, the purchaser could at most potentially win ten milliondollars. Whether the purchaser has one one-dollar ticket that has awinning number or three one dollar tickets with winning numbers, thepurchaser of the one dollar ticket can only win in the first pricecategory. The purchaser would share winnings with himself if he or shehad multiple one dollar tickets with winning numbers. Therefore,purchasers are more likely to purchase higher priced lottery ticketsthereby leading to an increase in lottery ticket sales revenues.

FIG. 14 illustrates a graph 1400 in which two different variable ratiosexist. A first point 1402 is plotted to illustrate a potentialdistribution of ten million dollars that can be won in the first pricecategory. A second point 1404 is plotted to illustrate a potentialdistribution of thirty million dollars that can be won in the secondprice category. The first association is ten million (ten milliondollars divided by the one dollar price category) and the secondassociation is fifteen million (thirty million dollars divided by thetwo dollar price category). The second association minus the firstassociation equals five million (fifteen million minus ten million).Therefore, a variable ratio exists between the first association and thesecond association. In addition, a variable ratio exists between thefirst association and the second association when the reference pointsare the second point 1404 and a third point 1406. The first associationis fifteen million (thirty million dollars divided by the two dollarprice category) and the second association is twenty million (sixtymillion dollars divided by the three dollar price category). The secondassociation minus the first association equals five million (twentymillion minus fifteen million). These variable ratios are depicted inthe graph 1400 because a first line 1410 is depicted between the firstpoint 1402 and the second point 1404, and a second line 1412 is depictedbetween the second point 1404 and the third point 1406. The first line1410 has a greater slope than an origin line 1408 that is depicted fromthe origin to the first point 1402 because there is more incentive for apurchaser of a ticket to purchase a two dollar ticket than a one dollarticket. One of ordinary skill in the art will recognize that the term“origin” refers to the point on a graph that has an x-coordinate of zeroand a y-coordinate of zero. Further, the second line 1412 has a greaterslope than the first line 1410, thereby illustrating that a purchaser ofa ticket has more incentive to purchase a three dollar ticket than a twodollar ticket.

In one embodiment, the potential distributions are not limited tospecific ratios. For instance, the potential distributions can beestablished according to a constant ratio, a variable ratio, or acombination of a constant ratio and a variable ratio.

FIG. 15 illustrates a lottery ticket dispensing machine 1500. Thedifferent embodiments discussed above can be implemented with the use ofthe lottery ticket dispensing machine 1500, which can be positioned atvarious point of sale locations. The lottery ticket dispensing machinehas a housing 1502 which stores the internal components of the lotteryticket dispensing machine 1500. In addition, the lottery ticketdispensing machine 1500 also has a user input device 1504 on which auser can input data for the sale of a lottery ticket. For instance, thevendor can input one of the different price categories in themulti-priced lottery system.

The price category that the vendor enters can be displayed on a screen1508 of a display 1506. In one embodiment, the display 1506 is agraphical user interface. In another embodiment, the display 1506displays data other than the price categories.

The vendor can then sell tickets in the respective price categories.When a purchaser would like to purchase a lottery ticket, the vendorenters the purchase information into the lottery ticket dispensingmachine 1500 via the user input device 1504. In one embodiment, the userinput device is a keyboard. In another embodiment, the user input deviceis operated by using a computer mouse. In an alternate embodiment, theuser input device is a touch screen. In yet another embodiment, the userinput device is voice activated. In an alternative embodiment, thedisplay 1506 displays the purchased information that is entered via theuser input device 1504.

In one embodiment, the lottery ticket dispensing machine 1500 has apayment reception module (not shown) that receives a payment for thepurchase of a lottery ticket. In another embodiment, the paymentreception module receives an electronic payment.

After the vendor inputs the data needed to sell a ticket from one of theselected price categories, a ticket 1512 is printed from a lotteryticket printer 1510. In one embodiment, the ticket printer 1510 ishoused within the housing 1502. In another embodiment, the lotteryticket printer 1510 is positioned outside of the housing 1502 and isoperably connected to the lottery ticket dispensing machine 1500. In yetanother embodiment, the lottery ticket printer 1510 receives data fromthe lottery ticket dispensing machine 1500 through a wirelessconnection.

FIG. 16 illustrates the internal components of the housing 1502 of thelottery ticket dispensing machine 1500. The housing 1502 houses acontroller 1604, a price category reception module 1606, a user inputmodule 1608, and a lottery ticket printer 1610. The controller 1604coordinates the operation of these internal components.

The price category reception module 1606 receives the different pricecategories in which lottery tickets can be purchased in the multi-pricedlottery system. In one embodiment, the price category reception modulereceives the different price categories and the associated distributionsfor each of the respective price categories. In one embodiment, a vendorcan manually input the different price categories into the lotteryticket dispensing machine 1500. In another embodiment, the vendor canelectronically input the different price categories into the lotteryticket dispensing machine 1500 by inserting a computer readable mediuminto the lottery ticket dispensing machine 1500. In yet anotherembodiment, the price category reception module 1606 receives the datarelated to the price category reception module from a server through anetwork.

In one embodiment, the user input module 1608 receives a user input fromthe user input device 1504. The user input module 1608 communicates withthe controller 1504 SO that the controller can provide an instruction tothe lottery ticket printer 1610 to print the lottery ticket.

FIG. 17 illustrates a configuration in which the lottery ticketdispensing machine 1500 communicates with a server 1702 to receive aprice category and the associated distribution of the price category.The price category and the associated distribution can be determinedaccording to the multi-priced lottery as a variable ratio or as aconstant ratio as discussed above. The internal components housed withinthe housing 1602 are once again illustrated. The server 1702 provides aprice category through a network 1704 to the price category receptionmodule 1606 in the lottery ticket dispensing machine 1500. In oneembodiment, multiple price categories are sent simultaneously with theirassociated distributions. In another embodiment, each price category issent by itself with its associated distribution.

FIG. 18 illustrates a configuration in which the lottery ticketdispensing machine 1500 communicates with a server 1702 to transmit averification code. In one embodiment, the housing 1602 also houses alottery ticket purchase transmission module 1802. The lottery ticketpurchase transmission module 1802 determines when a ticket has beenpurchased and transmits a verification code to a server 1806 through anetwork 1804. Upon a lottery ticket winner winning a distribution, thelottery operator can verify that the ticket holder purchased a validlottery ticket by confirming that the verification code printed on theticket matches the verification code received by the server 1806. In oneembodiment, the lottery ticket printer 1610 prints the verification codeon the ticket.

In another embodiment, the lottery ticket purchase transmission moduletransmits other data to the server 1806. For instance, the pricecategory of the purchased ticket can be transmitted. The lotteryoperator can then record how large a jackpot is increasing in order toadvertise the size of the jackpot to the public.

In another embodiment, the server 1806 is the same server as the server1702. Therefore, the transmission of the price category and thereception of the verification code can be done by one server. In anotherembodiment, the server 1806 and the server 1702 are located at the samelocation. Therefore, the server 1702 and the server 1806 can more easilycommunicate with one another.

FIG. 19 illustrates a configuration in which a server 1902 sends data tothe lottery ticket dispensing machine 1500. The server 1902 providesinstructions to a price category module 1904 and to a price categorytransmission module 1906. The price category module 1904 determinesprice categories and distributions according to a variable ratio or aconstant ratio in a multi-priced lottery distribution as discussedabove. The price category transmission module 1906 then transmits theprice category and the associated distribution through the network 1704to the lottery ticket dispensing machine 1500. In one embodiment, theprice category reception module illustrated in FIG. 17 receives theprice categories and associated distributions.

FIG. 20 illustrates a multi-priced distribution system. A first pricecategory input module 2002 provides a first price category to amulti-priced distribution module 2006. In addition, a second pricecategory input module 2004 provides a second price category to themulti-priced distribution module 2006. In one embodiment, themulti-priced distribution module 2006 calculates a variable ratio for amulti-priced lottery as discussed above. In another embodiment, themulti-priced distribution module 2006 calculates a constant ratio for amulti-priced lottery as discussed above. In yet another embodiment, themulti-priced distribution module 2006 calculates a variable ratio and aconstant ratio for a multi-priced lottery as discussed above. In oneembodiment, the first price category input module, the second pricecategory input module, and the multi-priced distribution module arestored on a computing device. In another embodiment, the first pricecategory input module, the second price category input module, and themulti-priced distribution module are stored on a server. In anotherembodiment, the first price category input module, the second pricecategory input module, and the multi-priced distribution module arestored on a client computer. In yet another embodiment, the first pricecategory input module, the second price category input module, and themulti-priced distribution module are stored on the lottery ticketdispensing machine 1500.

FIG. 21 illustrates a multi-priced lottery system configuration forintra-shared distributions. A first price category distribution module2102 receives requests to distribute portions of the first distributionto lottery ticket holders in the first price category. If there aremultiple lottery ticket holders in the first price category, the firstprice category distribution module 2102 sends a request to a first pricecategory intra-shared distribution module 2108, which distributesportions of the first distribution to the lottery ticket holders in thefirst price category.

A second price category distribution module 2104 receives requests todistribute portions of the second distribution to lottery ticket holdersin the second price category. If there are multiple lottery ticketholders in the second price category, the second price categorydistribution module 2104 sends a request to a second price categoryintra-shared distribution module 2110, which distributes portions of thesecond distribution to the lottery ticket holders in the second pricecategory.

In one embodiment, a random number selection module 2106 randomlyselects a winning lottery number. The random number selection module2106 provides the winning lottery number to the first price categoryintrashared distribution module 2108, and to the second price categorydistribution module 2110.

FIG. 22 illustrates an inter-shared lottery distribution system 2200,which encompasses the lottery distribution configuration of FIG. 21. Ifthere are winners in both the first price category and the second pricecategory, the first price category module 2102 sends a request to adivided first price category distribution module 2202 and the secondprice category module 2104 sends a request to a divided second pricecategory distribution module 2204. The divided first price distributionmodule 2202 and the second price distribution module 2204 providerequests to a first inter-shared distribution module 2206. The firstinter-shared distribution module 2206 calculates the inter-shareddistribution according to the inter-shared distribution in themulti-priced lottery system discussed above.

FIG. 23 illustrates a lottery ticket dispensing system 2300. The lotteryticket dispensing system 2300 includes a server 2302, which is operablyconnected to a database 2304. In one embodiment, the components of theinter-shared lottery distribution system 2200 are stored on the database2304. The server 2302 communicates with the lottery ticket dispensingmachine 1500 through the network 1704 to provide price categories andassociated distributions. In one embodiment, the server 2302 receives averification code from lottery ticket dispensing machine 1500. Inanother embodiment, the server 2302 receives statistical informationregarding lottery ticket sales from lottery ticket dispensing machine1500.

FIG. 24 illustrates a virtual lottery system 2400. In one embodiment, aserver 2402 communicates with a first virtual lottery unit 2404, asecond virtual lottery unit 2406, and a third virtual lottery unit 2408.The server 2402 can communicate with these units through a network 2410such as a Local Area Network (“LAN”), a Wide Area Network (“WAN”), theInternet, cable, satellite, etc. Alternatively, the server 2402 can behardwired to the units.

In one embodiment, as players provide payment to enter a virtual lotteryat one of the units, at least a portion of the payment is added to ajackpot 2412 stored in a memory 2414. In one embodiment, the jackpot2412 is a progressive jackpot where the advertised jackpot is increasedwith a percentage of virtual ticket sales revenue. Therefore, player canwin a larger jackpot than initially advertised. In one embodiment, thejackpot is increased with a percentage of the revenue from each virtualticket sold. In essence, a variable prize is offered with a progressivejackpot. The prize can increase with each ticket sale. Thus, an increasein ticket sales results in the jackpot increasing or progressing invalue. In one embodiment, the prize increases with a portion of thevirtual ticket sales. In another embodiment, the progressive jackpot canbe divided among multiple winners located at multiple units. Forexample, in FIG. 24, the progressive jackpot 2412 can be shared amongvirtual units 2402, 2406, and 2408. In one embodiment, a minimum amountof ticket sales is not required. The lottery prize can be a variableprize from the outset. A percentage of each ticket sale can becontributed to the variable prize jackpot.

Accordingly, when a player is considering entering a virtual lottery atthe first virtual lottery unit 2404, the server 2402 provides the sizeof the current jackpot, which has accumulated from other players at thesecond virtual lottery unit 2406 and the third virtual lottery unit 2408at previous times, to the first virtual lottery unit 2404. In oneembodiment, the first virtual lottery unit 2404, the second virtuallottery unit 2406, and the third virtual lottery unit 2408 are alllinked to one another. For instance, the server 2402 can provide updatedjackpot information based on lottery wins and/or losses to the firstvirtual lottery unit 2404, the second virtual lottery unit 2406, and thethird virtual lottery unit 2408. Thus, the progressive jackpot willchange in value according to the wins and/or losses between the playersat first virtual lottery unit 2404, the second virtual lottery unit2406, and the third virtual lottery unit 2408. In another embodiment,the server 2402 is not needed to communicate the updated jackpotinformation because the virtual lottery units communicate with oneanother.

By having the virtual lottery units connected through a network, theprogressive jackpot 2412 can build up more than in a paper basedlottery. Players do not have the time constraints of having to wait fora lottery drawing. Further, players do not have to wait for selectionsof other players. Accordingly, the progressive jackpot can build up muchmore quickly through this type of configuration. The progressive jackpotcan also build up in a similar manner if the virtual lottery units arelinked to one another.

When the player at the first virtual lottery unit 2404 enters a virtuallottery, the player is essentially purchasing a virtual lottery ticketfor a drawing in which that virtual lottery ticket is the only virtuallottery ticket that exists. Accordingly, the player can instantlydetermine if a winning virtual lottery-ticket has been purchased.

Similar to a regular lottery, the first virtual lottery unit 2404provides the player with the opportunity to select a virtual lotteryticket number or to have the first virtual lottery unit 2404 randomlygenerate a “quick pick” for the player. The first virtual lottery unit2404 then randomly selects the winning virtual lottery ticket numbers.Further, the first virtual lottery unit 2404 compares the virtuallottery ticket number to determine if the player won the virtuallottery. If the player won the virtual lottery, then a portion of thejackpot or the jackpot in its entirety is provided to the player and isdeducted from the jackpot for future play. On the other hand, if theplayer does not win the virtual lottery, the jackpot is available tofuture players of the virtual lottery.

In another embodiment, the server 2402 randomly generates the winningvirtual lottery ticket number. In yet another embodiment, the playerselects the virtual lottery ticket number by entering the number of thevirtual lottery ticket without having a quick pick option. In yetanother embodiment, the player selects the virtual lottery ticket numberby selecting the quick pick option and cannot manually enter the numbersof the virtual lottery tickets.

In one embodiment, the jackpot 2412 is probabilistic. In other words, alarge amount is indicated as being the jackpot 2412 in order to inducethe purchase of virtual lottery tickets regardless of whether sufficientsales of virtual lottery tickets have occurred to cover the jackpot2412. Accordingly, there is an increased likelihood that the sales ofthe virtual lottery tickets will suffice to cover the jackpot 2412because players are more likely to purchase virtual lottery tickets fora large jackpot than for a low jackpot. In one embodiment, insurance ispurchased as a guarantee that the jackpot will be paid in the event thatthe virtual lottery ticket sales are insufficient to cover the jackpot2412.

FIG. 25 illustrates the components of the first virtual lottery unit2404. In one embodiment, a number selection input 2502 receives avirtual lottery ticket number selected by the player. In one embodiment,the number selection input 2502 is a keypad that the player can utilizeto manually enter the virtual lottery ticket number. In anotherembodiment, the number selection input 2502 is a touch screen on whichthe player can enter the virtual lottery ticket number. In yet anotherembodiment, the number selection input 2502 is a voice recognitionsystem through which the player can vocally provide the virtual lotteryticket number. In yet another embodiment, the player can enter a commandfor a quick pick so that the first virtual lottery unit 2404 randomlygenerates the virtual lottery number.

In one embodiment, the first virtual lottery unit 2404 has a randomnumber generator 2504. In one embodiment, the random number generator2504 randomly generates the winning virtual lottery number. In anotherembodiment, the random number generator 2504 randomly generates a quickpick virtual lottery number. In yet another embodiment, the randomnumber generator 2504 both randomly generates the winning virtuallottery number and the quick pick number. In another embodiment, theserver 2402 has a random number generator that randomly generates thewinning virtual lottery number while the random number generator 2504 inthe virtual lottery unit 2404 randomly generates the quick pick number.

In one embodiment, the first virtual lottery unit 2404 has a lotteryunit processor that coordinates the various operations of the firstvirtual lottery unit 2404. For instance, the lottery unit processor 2506receives the virtual lottery number from the number selection input 2502that was selected by the player. The lottery unit processor 2506 canthen store the virtual lottery number in a memory 2414. In addition, thelottery unit processor 2506 receives the winning virtual lottery numberfrom the random number generator 2504 and stores the winning virtuallottery number in the memory 2414. The lottery unit processor 2506 thenretrieves the virtual lottery number in the memory 2414. The lotteryunit processor 2506 then retrieves the virtual lottery number to comparethe two numbers. If the two numbers are the same in entirety, then theplayer wins a known percentage of the virtual lottery prize. If subsetsof the two numbers are the same, then the player wins a secondary prizewhich is a fixed prize.

In one embodiment, a communication controller 2510 in the virtuallottery unit 2404 communicates with the server 2402. The communicationcontroller 2510 receives data such as the value of the jackpot. Thecommunication controller 2510 can store this value on the memory 2414 sothat the lottery unit processor 2506 can compute a known percentage ofthe jackpot that can be won by the player. In another embodiment, thelottery unit processor 2506 communicates with the communicationcontroller 2510 after data is received by the communication controller2510 from the memory 2414. The lottery unit processor 2506 then storesthe data in the memory 2414.

In one embodiment, a payment acceptor 2512 accepts payment for a virtuallottery ticket. The lottery unit processor 2506 stores the amountprovided by the player. In one embodiment, the payment acceptor 2512 isa bill acceptor that accepts paper currency. In another embodiment, thepayment acceptor 2512 is a coin acceptor that accepts coins for payment.In yet another embodiment, the payment acceptor accepts cashlesspayment. Various forms of cashless can include a credit card, smartcard, stored value card purchased at a kiosk, stored value card receivedin a promotion, code such as number that is printed on a ticket, etc.

The first virtual lottery unit 2404 can be implemented in a number ofdifferent combinations. Any type of computing device, such as a personalcomputer, can be utilized. Further, various displays can be operablyattached or integrated into the first virtual lottery unit 2404 toprovide the player with data such as the jackpot value, knownpercentages of the jackpot that can be won according to respectivevirtual lottery ticket prizes, the virtual lottery ticket, and thewinning virtual lottery number. Other embodiments may provide displayswith other pertinent information.

FIGS. 26A-26D illustrate the contents of the memory 2414 as data isreceived from the server 2402. One or more displays operably connectedto or operably integrated into the first virtual lottery unit 2404 toprovide the player with data such as the jackpot value, knownpercentages of the jackpot that can be won according to respectivevirtual lottery ticket prices, the virtual lottery ticket, and thewinning virtual lottery number. Other embodiments may provide displayswith other pertinent information.

FIGS. 26A-26E illustrate the contents of the memory 2414 as data isreceived from the server 2402. One or more displays operably connectedto or operably integrated into the virtual lottery unit 2404 can displaythese contents.

FIG. 26A illustrates the memory 2414 containing a plurality of virtuallottery ticket prices and a plurality of known percentages 2604 of thejackpot. In one embodiment, each of the known percentages 2604corresponds to one of the virtual lottery ticket prices 2602. Forinstance, a purchase of a one dollar virtual lottery ticket can providethe player with the ability to win twenty five percent of the jackpot.Similarly, a purchase of a two dollar ticket can provide the player withthe ability to win fifty percent of the jackpot. Finally, a purchase ofthe three dollar ticket can provide the player with the ability to winone hundred percent of the jackpot.

The player has more inducement to purchase the three dollar ticket thanthe one dollar ticket or the two dollar ticket because the player canwin a larger portion of the jackpot. The player is actually eligible towin a larger percentage of the jackpot by purchasing one three dollarticket as opposed to three one dollar tickets. Therefore, over anextended period of time, players are more likely to purchasehigher-priced tickets rather than lower-priced tickets, thereby creatinghigher revenues.

In one embodiment, the player can purchase a plurality of virtuallottery tickets for a single virtual lottery drawing. For instance, theplayer can purchase a one dollar virtual lottery ticket and a threedollar virtual lottery ticket, each having different virtual lotteryticket numbers. Accordingly, the player increases the odds at winningthat particular virtual lottery drawing by having multiple differentvirtual lottery ticket numbers. The player can also purchase multiplevirtual lottery tickets for the same drawing. For instance, the playercan purchase two three dollar virtual lottery tickets. On the otherhand, the player may choose to enter different drawings.

In one embodiment, the player can select the virtual lottery ticketnumber for some of the virtual lottery tickets and can have quick picksof the virtual lottery tickets for other virtual lottery tickets in thesame drawing. Accordingly, additional interest in playing the lottery isprovided because the player can have a mixture of some of the player'sown selections of virtual lottery ticket numbers and the random numbergenerator's selection of virtual lottery ticket numbers.

The various choices that the player is given provide further inducementto play the virtual lottery more frequently and to purchase higherpriced virtual lottery tickets. The player is given an opportunity topurchase differently priced tickets to win various percentages of thejackpot 2412 and/or secondary prizes, and to increase the odds atwinning a percentage of the jackpot 2412 or a secondary prize bypurchasing multiple virtual lottery tickets.

Different percentages than the percentages illustrated may be utilized.Further, different virtual lottery ticket prices than the virtuallottery ticket prices illustrated may also be utilized. A differentnumber of virtual lottery ticket prices and a different number ofcorresponding jackpot percentages may also be utilized. Further, thevirtual lottery ticket prices 2602 and the percentages 2604 of thejackpot may be updated by the server 2404. Alternatively, the virtuallottery ticket prices 2602 and the percentages 2604 of the jackpot maybe permanently stored in the memory 2414 such as if the memory 2414 is aread only memory.

FIG. 26B illustrates the memory 2414 depicted in FIG. 26A with a jackpotvalue 2606 and a plurality of jackpot distributions 2610. In oneembodiment, the jackpot value 2606 is received from the server 2404. Asplayers at other virtual lottery units 2406 and 2408 win or lose, thejackpot value 2606 is increased or decreased. The server 2402 stores thecurrent value of the jackpot. Once the virtual lottery unit 2404receives the jackpot value 2606, the virtual lottery unit 2404 cancalculate the percentage values 2610 corresponding to the virtuallottery ticket prices 2602. For instance, the one dollar virtual lotteryticket holder can win two hundred fifty thousand dollars. The two dollarvirtual lottery ticket holder can win five hundred thousand dollars.Finally, the three dollar virtual lottery ticket holder can win onemillion dollars.

In another embodiment, the jackpot value 2606 is based on aprobabilistic model rather than a strictly pari-mutuel model. Forinstance, the jackpot value 2606 will initially be a guaranteed largeprize prior to any sales of virtual lottery tickets. Accordingly, moreplayers will be induced to purchase virtual lottery tickets because theydo not have to wait for a significant number of virtual lottery ticketsales in order for the jackpot value 2606 to become large. A third partyentity can provide insurance so that the situations in which playershappen to win virtual lotteries where the virtual lottery ticket salesare not significant enough to be greater than or equal to the jackpotvalue 2606 are provided for. A portion or all of virtual lottery ticketsales that exceed the guaranteed prize amount can be added to thejackpot value 2606.

In one embodiment, the virtual lottery unit 2404 calculates the jackpotdistribution 2610 after receiving the jackpot value 2606 from the server2402. For instance, the virtual lottery unit processor 2506 (FIG. 25)can perform the calculation. In another embodiment, the server 2402performs the calculation and sends the result to the virtual lotteryunit 2404.

FIG. 26C illustrates the virtual lottery ticket price 2602 depicted inFIG. 26A with the addition of a secondary prize. In one embodiment, asecondary prize is a fixed prize. By the term fixed prize, the sameprize will be provided irrespective of virtual lottery ticket sales atother virtual lottery units. In other words, the fixed prize is notincreased or decreased according to virtual lottery ticket sales. Thefixed prize may be accumulated according to a probabilistic or apari-mutuel model.

In one embodiment, if the virtual lottery ticket number is not the samein entirety as the winning virtual lottery ticket number, the playercannot win the percentage of the jackpot value 2606 associated withvirtual lottery ticket price of the virtual lottery ticket purchased.However, the player can still win a secondary prize if a subset of thevirtual lottery ticket number equals a subset of the winning virtuallottery ticket number.

In one embodiment, the secondary prize is a fixed prize that is the sameacross virtual lottery prices. For instance, if the player has virtuallottery ticket number that has a subset of the winning virtual lotteryticket number, the player wins a fixed prize distribution 2612 of, forexample, thirty thousand dollars regardless of the amount that theplayer purchased the virtual lottery ticket for.

FIG. 26D illustrates an embodiment in which the secondary prize is afixed prize that can be won according to a known percentageconfiguration. In one embodiment, the percentage configuration is thesame as that associated with the virtual lottery ticket prices forwinning a percentage of the jackpot. For instance, if the fixed prize isone hundred thousand dollars, a virtual lottery player with a virtuallottery ticket number that has a match which is a subset of the fullmatch may win a known percentage 2604 associated with price of thevirtual lottery ticket purchased. For example, a player that purchases aone-dollar virtual lottery ticket can win a known twenty five percent ofone hundred thousand dollars, which is twenty five thousand dollars. Aplayer that purchases a two-dollar virtual lottery ticket can win fiftypercent of one hundred thousand dollars, which is fifty thousanddollars. Finally, a player that purchases a three-dollar virtual lotteryticket can win one hundred percent of one hundred thousand dollars,which is one hundred thousand dollars.

In one embodiment, each of the percentages of the fixed prize can varyaccording to the quality of the match. For instance, in the aboveexample, if the player had a match that had all of the numbers of thewinning virtual lottery number except for one, the player could wintwenty-five percent of the fixed prize. If the player had a match thathad all of the numbers of the winning virtual lottery number except fortwo, the player could win twenty percent of the fixed prize. In otherwords, the percentage of the fixed prize associated with a virtuallottery ticket price can be smaller for virtual lottery ticket numbersthat have a smaller subset of the winning virtual lottery number.

FIG. 26E illustrates an embodiment in which the fixed prize distributionis based on a percentage configuration other than that of theprogressive jackpot configuration. In one embodiment, higher percentagesare utilized for higher priced virtual lottery tickets. For instance,the known fixed prize percentages 2608 can be thirty percent for thefirst lottery ticket price, sixty percent for the second lottery ticketprice, and one hundred percent for the third lottery ticket price. As aresult, a series of fixed prize distributions 2612 can be made. Forinstance, a thirty thousand dollar distribution can be made for theone-dollar virtual lottery ticket, a sixty thousand dollar distributioncan be made for the two-dollar virtual lottery ticket, and a one hundredthousand dollar distribution can be made for the three-dollar virtuallottery ticket.

FIG. 27 illustrates the virtual lottery unit 2404. The virtual lotteryunit has a jackpot display 2703 that indicates the current progressivejackpot value. In one embodiment, the server 2402 sends the jackpotvalue to the virtual lottery unit for display on a progressive jackpotdisplay 2703. The virtual lottery unit also has a virtual lottery pricedisplay 2702 that displays prices for virtual lottery tickets andassociated known percentages for each of the virtual lottery ticketprices. An indication is also provided as to whether a virtual lotteryticket is for a fixed prize. For instance, a one-dollar virtual lotteryticket may be purchased to potentially win a fixed prize of one hundredthousand dollars. A two-dollar virtual lottery ticket may be purchasedto potentially win twenty-five percent of the jackpot for a possible twohundred fifty thousand dollars. In addition, a three-dollar virtuallottery ticket may be purchased to potentially win one hundred percentof the jackpot for a possible one million dollars.

A plurality of price selection inputs 2704 are provided so that theplayer can select the virtual lottery ticket that the player would liketo purchase. For instance, the player can press the one-dollar button ifthe player would like to purchase the one-dollar virtual lottery ticketto potentially win the fixed prize of one hundred thousand dollars.Further, the player can press the two-dollar button if the player wouldlike to purchase the two-dollar virtual lottery ticket to potentiallywin twenty five percent of the jackpot. In addition, the player canpress the three-dollar button if the player would like to purchase thethree-dollar virtual lottery ticket to potentially win one hundredpercent of the jackpot.

The player can enter a selection of a virtual lottery ticket numberthrough an input module 2706. In one embodiment, the input module 2706is a keypad. In another embodiment, the input module 2706 is a touchscreen. Alternatively, the player can press a quick pick button 2708 tohave the virtual lottery unit 2404 select the virtual lottery ticketnumber for the player. The player can press a virtual lottery initiationbutton 2710 to being lottery play. Further, the payment module 2712receives one of the various forms of payment described above.

In one embodiment, the virtual lottery unit 2402 has the plurality ofbuttons illustrated, such as the input module 2706 and the quick pickbutton 2708, to determine the virtual lottery ticket number. In anotherembodiment, a menu is provided that provides the player with the abilityto make a choice of a manual selection or of a quick pick selection ofthe virtual lottery ticket number. The menu can be provided on acomputerized display such as a liquid crystal display or a plasmadisplay.

In one embodiment, the player can choose a first known percentage thatis distinct from a second known percentage in which to purchase avirtual lottery ticket. The first known percentage is associated with afirst price of a virtual lottery ticket, and the second known percentageis associated with a second price of a virtual lottery ticket.

FIG. 28 illustrates a process 2800 for the operating the virtuallottery. At a process block 2802, a selection of a virtual lotteryticket price is received. A determination of the potential distributionof the jackpot that can be won is then determined at a process block2804. If the lottery ticket price is associated with a percentage of thejackpot, the percentage of the current jackpot is calculated anddisplayed to the player. In one embodiment, this calculation isperformed and displayed for all of the price categories prior to theplayer's selection at the process block 2802. A calculation is notneeded for the fixed prize as the fixed prize does not change. At aprocess block 2806, the player selects a virtual lottery ticket number.The player can manually enter the virtual lottery ticket number throughthe input module 2706 on the virtual lottery machine. In an alternativeembodiment, the player can choose the quick pick button to have thevirtual lottery unit 2404 randomly generated the virtual lottery ticketnumber for the player. At a process block 2808, the winning virtuallottery ticket number is generated. In one embodiment, the virtuallottery unit generates the winning virtual lottery ticket number. Inanother embodiment, the server generates the winning virtual lotteryticket number.

At a process block 2810, a comparison is made between virtual lotteryticket number and the winning virtual lottery ticket number. In oneembodiment, the virtual lottery unit 2404 performs this comparison. Inanother embodiment, the server performs this comparison. At a processblock 2812, a determination is made if the virtual lottery ticket numberequals the winning virtual lottery ticket number. If the virtual lotteryticket number equals the winning virtual lottery number, the process2300 proceeds to a process block 2814 where the winner is provided withthe percentage of the jackpot associated with the virtual lottery ticketprice. Alternatively, if the virtual lottery ticket price is associatedwith a fixed prize, the winner is provided with the fixed prize. Theprocess 2300 then proceeds to the end block 2816. If the virtual lotteryticket number does not equal the winning virtual lottery number, theprocess 2300 proceeds to the end block 2816.

FIG. 29 illustrates a process 2900 for the operating the virtuallottery. At a process block 2902, a selection of a virtual lotteryticket price is received. A determination of the potential distributionof the jackpot that can be won is then determined at a process block2904. If the lottery ticket price is associated with a percentage of thejackpot, the percentage of the current jackpot is calculated anddisplayed to the player. In one embodiment, this calculation isperformed and displayed for all of the price categories prior to theplayer's selection at the process block 2802. A calculation is notneeded for the fixed prize as the fixed prize does not change. At aprocess block 2906, the player a virtual lottery ticket number israndomly selected. In one embodiment, a quick pick is utilized torandomly select the virtual lottery ticket number. The player canmanually enter the virtual lottery ticket number through the inputmodule 2706 on the virtual lottery machine. In an alternativeembodiment, the player can choose the quick pick button to have thevirtual lottery unit 2404 randomly generated the virtual lottery ticketnumber for the player. At a process block 2908, the winning virtuallottery ticket number is generated. In one embodiment, the virtuallottery unit generates the winning virtual lottery ticket number. Inanother embodiment, the server generates the winning virtual lotteryticket number.

At a process block 2910, a comparison is made between virtual lotteryticket number and the winning virtual lottery ticket number. In oneembodiment, the virtual lottery unit 2404 performs this comparison. Inanother embodiment, the server performs this comparison. At a processblock 2912, a determination is made if the virtual lottery ticket numberequals the winning virtual lottery ticket number. If the virtual lotteryticket number equals the winning virtual lottery number, the process2300 proceeds to a process block 2914 where the winner is provided withthe percentage of the jackpot associated with the virtual lottery ticketprice. Alternatively, if the virtual lottery ticket price is associatedwith a fixed prize, the winner is provided with the fixed prize. Theprocess 2300 then proceeds to the end block 2916. If the virtual lotteryticket number does not equal the winning virtual lottery number, theprocess 2300 proceeds to the end block 2916.

In one embodiment, the inter-sharing and intrasharing methodologiesdiscussed above can be implemented in the virtual lottery. For instance,if two players at different virtual lottery units happen to win ajackpot at the same time, the two players may intra-share if theypurchased virtual lottery tickets for the same price or may inter-shareif they purchased virtual lottery tickets for different prices. Ifmultiple players win at the same time, the players may inter shareacross price categories and may intra share within the same pricecategory.

FIG. 30 illustrates a virtual lottery system 3000 with a progressivejackpot 3012 wherein the advertised jackpot is increased based on aportion of ticket sale revenue. The lottery system 3000 depicted in FIG.30 is the lottery system depicted in FIG. 24 with a jackpot that isillustrated as being progressive.

Because the lottery system of FIG. 30 utilizes a progressive jackpot,the ticket holder can win a larger jackpot than initially advertised. Inone embodiment, the jackpot is increased with a portion of the revenuefrom each virtual lottery ticket sold.

In one embodiment, the server 2402 communicates with the first virtuallottery unit 2404, the second virtual lottery unit 2406, and the thirdvirtual lottery unit 2408. As players provide payment to enter a virtuallottery at one of the units, at least a portion of the payment is addedto a progressive jackpot 3012 stored in the memory 2414. This networkingcapability between several virtual lottery units allows each of theseveral units to access a single progressive jackpot 3012. Thus, theprogressive jackpot 3012 can be shared among virtual units 2404, 2406,and 2408. In one embodiment, a minimum amount of ticket sales is notrequired. The lottery prize can be a variable prize from the outset. Apercentage of each ticket sale can be contributed to the progressivejackpot.

In another embodiment, a fixed amount of money is added to the jackpotfor each ticket sold regardless of the value of the ticket. This makesthe progressive jackpot increase in direct proportion to the number oftickets sold.

By having the virtual lottery units connected through the network 2410,the progressive jackpot 3012 can build up based on the quantity and theutilization of the virtual lottery units. Players do not have the timeconstraints of having to wait for a lottery drawing as in traditionallottery game. Further, players do not have to wait for selections ofother players. Accordingly, the progressive jackpot can build up quicklythrough this type of configuration. The progressive jackpot 3012 canalso build up in a similar manner if the virtual lottery units arelinked to one another.

In one embodiment, the virtual lottery ticket is associated with apercentage of the progressive jackpot 3012 based on the virtual lotteryticket price. For example, a player with a one-dollar ticket could wintwenty-five percent of the progressive jackpot, a player with atwo-dollar ticket could win fifty percent of the progressive jackpot,and a player with a three-dollar ticket could win one hundred percent ofthe progressive jackpot. Consequently, the percentage of the possiblejackpot winnings associated with each ticket price can vary. This givesa player purchasing a virtual lottery ticket at a lower price thebenefit of participating in a jackpot where other players purchasing avirtual lottery ticket at higher prices are contributing even more tothe progressive jackpot. For example, a player with a one-dollar tickethas an associated percentage of the progressive jackpot that the playercan win, and a player with a two-dollar ticket or a three-dollar ticketalso has an associated percentage of the progressive jackpot the playercan win. If the one-dollar ticket holder wins, the one-dollar ticketholder benefits from the portion of the ticketed sales revenuecontributed by the two-dollar ticket and the three-dollar ticket to theprogressive jackpot. In essence, multiple levels of participation areallowed in a progressive jackpot. Even though the one-dollar ticketholder is limited to winning a lesser percentage, for example,twenty-five percent, the one-dollar ticket holder can benefit from thejackpot prize becoming large.

If the majority of potential ticket holders are induced to purchasethree-dollar tickets, the potential ticket holders that can only affordto purchase a one-dollar ticket are still provided with an incentive toparticipate in the lottery because these ticket holders may still win aportion of a progressive jackpot 3012 that can potentially grow quitelarge. The growth of the progressive jackpot 3012 is particularlyenhanced with the percentage contribution from the higher priced ticketsand relatively high starting jackpots resulting from probability-basedthird-party prize guarantees, as compared with the more traditionalpari-mutuel lottery model. The potential ticket holders that can affordthe more expensive virtual tickets through the virtual lottery machineare even further induced to purchase tickets that are more expensive. Asstated previously, lottery players have an incentive to buy three-dollartickets because the more expensive tickets carry a greater distributionpercentage. With a progressive jackpot, players have an even greaterincentive to buy tickets that are more expensive because the jackpotkeeps increasing and the potential distribution grows larger.

Furthermore, when a multiple pricing scheme is utilized, players arefurther encouraged to buy virtual lottery tickets. In traditionallotteries, when the jackpot is won, the next game starts anew with astarting-level jackpot that is generally low. When a multiple pricingscheme is utilized, however, the jackpot is on average maintained athigher levels than without a multiple pricing scheme.

That is, following the selection of a winning number, the jackpot isreduced for ongoing games only if the winner was the purchaser of athree-dollar virtual lottery ticket. If the player with a one-dollarvirtual lottery ticket was the winner, such winner would win onlytwenty-five percent of the jackpot, and the remaining seventy-fivepercent would carry over for continuing play. Similarly, if the winnerwas a purchaser of a two-dollar virtual lottery ticket, such winnerwould only win fifty percent of the jackpot, and the balance of fiftypercent would be carried over for continuing play. As contrasted withthe foregoing, which results from the multiple pricing scheme andpre-determined percentage allocations for the multiple-priced virtuallottery game, as described herein, in the case of single-priced virtuallottery game or single-priced participation in a progressive jackpot, orwith traditional single-priced online lottery games, any winnerqualifies for the entire jackpot and, accordingly, the jackpot forcontinuing play is reduced down to the minimum level. At this minimumlevel, the lower jackpot is less likely to induce a volume of playconsistent with the volume anticipated from the higher average jackpotsthat would result from both the effect of the jackpot-retention featuredescribed above with the multiple pricing configuration, as well as withthe higher starting jackpot levels permitted through the contemplatedprobability-based third-party prize guarantee structure that iscontemplated.

In essence, a rollover is provided when no players win the jackpot, anda limited rollover is provided even when there is a winner, as long asthe winner has a lower level denomination priced ticket. Accordingly,the jackpot is on average at a significant level that can induce ticketholders to purchase lottery tickets. This is in contrast to traditionallotteries, which do not have the limited rollover and thereby havejackpots that fall to minimum levels which do not induce potentiallottery ticket holders to purchase lottery tickets.

A multiple pricing scheme entails multiple players having multiplelevels of participation. Players at lower levels of participation onlywin a portion of the jackpot but not the complete jackpot. For example,if a one-dollar virtual lottery ticket holder wins, the progressivejackpot distribution can be twenty-five percent of the progressivejackpot leaving seventy-five percent of the progressive jackpot forsubsequent players. In addition, the progressive jackpot continues toincrease as new virtual lottery tickets are purchased.

Similarly, if a two-dollar virtual lottery ticket holder wins, theprogressive jackpot distribution can be fifty percent of the progressivejackpot, leaving the other fifty percent of the progressive jackpot forsubsequent players. Again, the progressive jackpot continues toincrease. Only when a three-dollar virtual lottery ticket holder winsdoes the progressive jackpot distribution reach one hundred percent. Assuch, it is only then when a progressive jackpot starts anew at startingminimum levels.

As it is well known in the art, higher jackpots attract more players tothe game. A virtual lottery that has both, a progressive jackpot thatcontinuously grows with the virtual ticket sales, and a multiple-levelpricing scheme, maintains the average progressive jackpot at higheramounts. Higher average progressive jackpots further induce play andincrease ticket sales revenue.

FIG. 31A illustrates the memory 2414 containing a plurality of virtuallottery ticket prices and a plurality of known percentages of aprogressive jackpot 3012. In one embodiment, percentage 3108 correspondsto a virtual lottery ticket price 3102 providing a one-dollar virtuallottery ticket holder with the ability to win twenty-five percent of theprogressive jackpot 3012. Percentage 3104 corresponds to a virtuallottery ticket price 3110 providing a two-dollar virtual lottery ticketholder with the ability to win fifty percent of the progressive jackpot3012. Percentage 3106 corresponds to a virtual lottery ticket price 3112providing a three-dollar virtual lottery ticket holder with the abilityto win one hundred percent of the progressive jackpot 3012.

In one embodiment, when the progressive jackpot 3012 is initiated, theprogressive jackpot 3012 may start with an arbitrary amount, such as onemillion dollars. In another embodiment, the progressive jackpot 3012 canstart with a much higher amount based on an expectation of play and theodds of the game, reflecting a probability-based model and third-partyprize guarantee. Such guarantee enables the lottery guarantor to avoidthe risk associated with the higher starting jackpot.

The progressive jackpot distribution for each virtual lottery ticketholder varies according to the virtual lottery ticket price and thecorresponding percentage. Based on distribution percentages 3112, 3110and 3108, winning one-dollar virtual lottery ticket holders will receivea progressive jackpot distribution value 3118 of two hundred and fiftythousand dollars. Similarly, winning two-dollar virtual lottery ticketholders will receive a progressive jackpot distribution value 3116 offive hundred thousand dollars. Finally, winning three-dollar virtuallottery ticket holders will receive a progressive jackpot distributionvalue 3114 of one million dollars.

As the progressive jackpot continues to grow, players have moreincentive to continue to buy virtual lottery tickets because the prizethat each player can win also grows in proportion to the increase of theprogressive jackpot 3012.

In one embodiment, the inter-sharing and intrasharing methodologiesdiscussed above can be implemented in a virtual lottery that uses aprogressive jackpot 3012. For instance, if two players at differentvirtual lottery units happen to win a progressive jackpot at the sametime, the two players may intra-share if they purchased virtual lotterytickets for the same price or may inter-share if they purchased virtuallottery tickets for different prices. The distributions that the twoplayers inter share and intra share would be based on the progressivejackpot 3012. If multiple players win at the same time, the players mayinter share across price categories and may intra share within the sameprice category. The distributions that the multiple players inter shareand intra share may be also based on the progressive jackpot 3012.

FIG. 31B illustrates the memory 3014 containing a plurality of virtuallottery ticket prices and a plurality of known percentages of aprogressive jackpot 3012 that has increased. In one embodiment, apercentage of the virtual lottery ticket price is contributed to theprogressive jackpot 3012. As a result, virtual lottery tickets that aremore expensive contribute more to the progressive jackpot 3012 than theless expensive virtual lottery tickets. For example, if the contributedpercentage were thirty-three percent, a three-dollar virtual lotteryticket would contribute one dollar to that progressive jackpot 3012. Bycontrast, a one-dollar virtual lottery ticket would contributethirty-three cents. Therefore, the three-dollar virtual lottery ticketcontributes sixty-seven cents more than the one-dollar virtual lotteryticket. However, if he wins, the one-dollar virtual lottery ticketholder may still benefit from the extra sixty-seven cents contributed bythe revenue of the three-dollar virtual lottery ticket sale.

In one embodiment, the progressive jackpot 3012 can increase from onemillion dollars to, for example, one million four hundred thousanddollars. This increase can be the accumulation of the contributions fromsales revenue of one-dollar virtual lottery tickets, two-dollar virtuallottery tickets, and three-dollar virtual lottery tickets. With atwenty-five percent distribution 3108, a winning one-dollar virtuallottery ticket holder will receive a progressive jackpot distribution3120 equal to three hundred and fifty thousand dollars. In comparison tothe initial progressive jackpot distribution 3118 of two hundred andfifty thousand dollars, the progressive jackpot distribution 3120 ishigher as result of the value increase of the progressive jackpot 3012.The progressive jackpot 3012 in turn increased by contribution ofone-dollar, two-dollar and three-dollar virtual lottery tickets.Therefore, the one-dollar virtual lottery ticket holder also benefitsfrom the contributions of the two-dollar and three-dollar virtuallottery ticket sales revenue, as well as from other one-dollar ticketpurchases.

Likewise, with a fifty percent distribution 3110, a winning two-dollarvirtual lottery ticket holder will receive a progressive jackpotdistribution 3122 of seven hundred thousand dollars. In comparison tothe initial progressive jackpot distribution 3116 of five hundredthousand dollars, the progressive jackpot distribution 3122 is higher asresult of the value increase of the progressive jackpot 3012. Theprogressive jackpot 3012 in turn increased by contribution ofone-dollar, two-dollar and three-dollar virtual lottery tickets.Consequently, the two-dollar virtual lottery ticket holder also benefitsfrom the contributions of one-dollar and three-dollar virtual lotteryticket sales revenue, as well as from other two-dollar ticket purchases.

Finally, a winning three-dollar virtual lottery ticket holder willreceive a progressive jackpot distribution 3124 of one million fourhundred thousand dollars. The three-dollar virtual lottery ticket holderalso benefits from the contributions of one-dollar and two-dollarvirtual lottery ticket sales revenue, as well as from other three-dollarticket purchases. In another embodiment, the contributions from thesales of one-dollar virtual lottery tickets, two-dollar virtual lotterytickets, and three-dollar virtual lottery tickets can be equal. In otherwords, a fixed amount of money can be contributed per each virtuallottery ticket sold regardless of the virtual lottery ticket price. Forexample, ten cents can be contributed to the progressive jackpot 3012per each virtual lottery ticket sold. Regardless of the virtual lotteryticket price, a winning virtual lottery ticket holder can benefit fromthe sales contributions of all virtual lottery tickets. Thus, one-dollarvirtual lottery ticket holders would still potentially benefit from thecontributions of one-dollar, two-dollar and three-dollar virtual lotteryticket sales. The same applies to two-dollar and three-dollar virtuallottery ticket holders.

FIG. 32 illustrates the virtual lottery unit 3004 for a progressivejackpot 3012. The virtual lottery unit 3004 has a progressive jackpotdisplay 3203 that indicates the current progressive jackpot value 3012.In one embodiment, the server 3004 sends the progressive jackpot value3012 to the virtual lottery unit 3004 for display on the progressivejackpot display 3203. The virtual lottery unit 3004 also has a virtuallottery price display 3202 that displays prices for virtual lotterytickets and associated known percentages for each of the virtual lotteryticket prices. The distribution amount corresponding to each virtuallottery ticket price is also provided. For instance, a player thatutilizes the virtual lottery unit 3004 is able to see that a ticket witha virtual lottery ticket price 3102 of one dollar has a percentagedistribution 3108 of twenty-five percent. Since the progressive jackpotvalue 3012 is one million four hundred thousand dollars, the one-dollarprogressive jackpot distribution 3120 is three hundred and fiftythousand dollars. Similarly, the player can see that a ticket with avirtual lottery ticket price 3104 of two dollars has a percentagedistribution 3110 of fifty percent. Since the progressive jackpot value3012 is one million four hundred thousand dollars, the two-dollarprogressive jackpot distribution 3122 is seven hundred thousand dollars.Finally, the player can also see that a ticket with a virtual lotteryticket price 3106 of three dollars has a percentage distribution 3112 ofone hundred percent. Since the progressive jackpot value 3012 is onemillion four hundred thousand dollars, the three-dollar progressivejackpot distribution 3124 is also one million four hundred thousanddollars.

In another embodiment, the progressive jackpot is sent to a plurality ofvirtual lottery units operably connected to the server 3004. Eachvirtual lottery unit receives confirmation of the amount updatedprogressive jackpot from the server 3004. The update occurs every time avirtual lottery ticket is purchased at any of the connected virtuallottery units. In another embodiment, the update occurs periodically.

In any of the above lottery or virtual lottery configurations, theplayer may be able to win a secondary prize by having a lottery numberthat has a subset that equals a subset of the winning lottery number.For instance, the player may choose six numbers, the first three ofwhich are the same as the first three numbers of the winning lotterynumber. The player may then win a secondary prize. For instance, if theplayer purchased a one-dollar lottery ticket with a twenty-five percentmaximum participation, the player may win half of the twenty-fivepercent distribution, or twelve and a half percent, as opposed to thefull twenty five percent. Alternatively, the winner of a secondary prizemay receive a fixed-dollar amount which may vary proportionately ordisproportionately with the secondary prize applicable to tickets withalternative denominations and with such fixed secondary prize beingbased on the applicable ticket price. Thus, a three-dollar ticket winnermay win a secondary prize that is three times or four times the amountwon by a one-dollar ticket winner.

Other combinations of using a progressive jackpot exist. For example,the progressive jackpot may be available to two-dollar and three-dollarticket holders only, while one-dollar ticket holders benefit only fromthe initial amount in the jackpot. Likewise, the progressive jackpot maybe available only to three-dollar ticket holders, while two-dollar andone-dollar ticket holders benefit from the initial amount in thejackpot.

It is understood that the method and apparatus described herein may alsobe applied in other types of systems. Those skilled in the art willappreciate that the various adaptations and modifications of theembodiments of this method and apparatus may be configured withoutdeparting from the scope and spirit of the present method and system.Therefore, it is to be understood that, within the scope of the appendedclaims, the present method and apparatus may be practiced other than asspecifically described herein.

1. A method comprising: providing a first price category in which aplurality of first price category lottery tickets can be purchased,wherein the first price category indicates a first known distributionthat can be won with lottery tickets in the plurality of first pricecategory lottery tickets having a winning lottery number; providing asecond price category in which a plurality of second price categorylottery tickets can be purchased, wherein the second price categoryticket indicates a second known distribution, distinct from the firstknown distribution, that can be won with lottery tickets in theplurality of second price category lottery tickets having the winningnumber, wherein the second known distribution includes at least aportion of the revenue provided from the plurality of the first pricecategory lottery tickets and at least a portion of the revenue providedfrom the plurality of the second price category lottery tickets;randomly selecting the winning lottery number; providing a first pricecategory intra-shared distribution of the first known distribution if atleast one of the lottery tickets in the plurality of first pricecategory lottery tickets has a winning number, wherein the first pricecategory is the only price category having a winning ticket, whereineach of the winning tickets in the plurality of first price categorylottery tickets shares the first known distribution according to a firstprice category intra-sharing distribution formula; providing a secondprice category intra-shared distribution of the second knowndistribution if at least one of the lottery tickets in the plurality ofsecond price category lottery tickets has a winning number, wherein thesecond price category is the only price category having a winningticket, wherein each of the winning tickets in the plurality of secondprice category lottery tickets shares the second known distributionaccording to a second price category intra-sharing distribution formula;and providing a divided first price category intra-shared distributionof the first known distribution, a divided second price categoryintra-shared distribution of the second known distribution, and aninter-shared distribution of the first known distribution if at leastone of the lottery tickets in the plurality of first price categorylottery tickets has a winning number and if at least one of the lotterytickets in the plurality of second price category lottery tickets has awinning number, wherein each of the winning tickets in the plurality offirst price category lottery tickets shares the first known distributionaccording to the divided first price category intra-sharing distributionformula, wherein each of the winning tickets in the plurality of secondprice category lottery tickets shares the second known distributionaccording to the divided second price category intra-sharingdistribution formula, wherein each of the winning tickets in theplurality of the second price category lottery tickets shares the firstknown distribution with each of the winning tickets in the plurality ofthe first price category lottery tickets according to an inter-sharingdistribution formula.
 2. The method of claim 1, wherein the first knowndistribution also includes at least a portion of the revenue providedfrom the plurality of the first price category lottery tickets and atleast a portion of the revenue provided from the plurality of the secondprice category lottery tickets.
 3. The method of claim 1, wherein thesecond known distribution is larger than the first known distribution.4. The method of claim 1, wherein the inter-sharing formula is aweighted distribution that provides a larger portion of the first knowndistribution to winning tickets in the plurality of the second pricecategory lottery tickets.
 5. The method of claim 1, further comprisingproviding a guarantee of payment of the first known distribution.
 6. Themethod of claim 1, further comprising providing a guarantee of paymentof the second known distribution.
 7. The method of claim 1, furthercomprising receiving a guarantee of payment of the first knowndistribution.
 8. The method of claim 1, further comprising receiving aguarantee of payment of the second known distribution.
 9. A methodcomprising: providing a first price category in which a plurality offirst price category lottery tickets can be purchased, wherein the firstprice category indicates a first known distribution that can be won withlottery tickets in the plurality of first price category lottery ticketshaving a winning lottery number; providing a second price category inwhich a plurality of second price category lottery tickets can bepurchased, wherein the second price category ticket indicates a secondknown distribution, distinct from the first known distribution, that canbe won with lottery tickets in the plurality of second price categorylottery tickets having the winning number, wherein the second knowndistribution includes at least a portion of the revenue provided fromthe plurality of the first price category lottery tickets and at least aportion of the revenue provided from the plurality of the second pricecategory lottery tickets; randomly selecting the winning lottery number;providing a first price category intra-shared distribution of the firstknown distribution if at least one of the lottery tickets in theplurality of first price category lottery tickets has a winning number,wherein the first price category is the only price category having awinning ticket, wherein each of the winning tickets in the plurality offirst price category lottery tickets shares the first known distributionaccording to a first price category intra-sharing distribution formula;and providing a second price category intra-shared distribution of thesecond known distribution if at least one of the lottery tickets in theplurality of second price category lottery tickets has a winning number,wherein the second price category is the only price category having awinning ticket, wherein each of the winning tickets in the plurality ofsecond price category lottery tickets shares the second knowndistribution according to a second price category intra-sharingdistribution formula.
 10. The method of claim 9, wherein the first knowndistribution also includes at least a portion of the revenue providedfrom the plurality of the first price category lottery tickets and atleast a portion of the revenue provided from the plurality of the secondprice category lottery tickets.
 11. The method of claim 9, wherein thesecond known distribution is larger than the first known distribution.12. The method of claim 9, further comprising providing a guarantee ofpayment of the first known distribution.
 13. The method of claim 9,further comprising providing a guarantee of payment of the second knowndistribution.
 14. The method of claim 9, further comprising receiving aguarantee of payment of the first known distribution.
 15. The method ofclaim 9, further comprising receiving a guarantee of payment of thesecond known distribution.
 16. The method of claim 9, further comprisingproviding an inter-shared distribution of the first known distributionif at least one of the lottery tickets in the plurality of first pricecategory lottery tickets has a winning number and if at least one of thelottery tickets in the plurality of second price category lotterytickets has a winning number, wherein each of the winning tickets in theplurality of the second price category lottery tickets shares the firstknown distribution with each of the winning tickets in the plurality ofthe first price category lottery tickets according to an inter-sharingdistribution formula.
 17. The method of claim 16, further comprisingproviding a divided first price category intra-shared distribution ofthe first known distribution, wherein each of the winning tickets in theplurality of first price category lottery tickets shares the first knowndistribution according to the divided first price category intra-sharingdistribution formula.
 18. The method of claim 16, further comprisingproviding a divided second price category intra-shared distribution ofthe second known distribution, wherein each of the winning tickets inthe plurality of second price category lottery tickets shares the secondknown distribution according to the divided second price categoryintra-sharing distribution formula.
 19. A method comprising: providing afirst price category in which a plurality of first price categorylottery tickets can be purchased, wherein the first price categoryindicates a first known distribution that can be won with lotterytickets in the plurality of first price category lottery tickets havinga winning lottery number; providing a second price category in which aplurality of second price category lottery tickets can be purchased,wherein the second price category ticket indicates a second knowndistribution, distinct from the first known distribution, that can bewon with lottery tickets in the plurality of second price categorylottery tickets having the winning number, wherein the second knowndistribution includes at least a portion of the revenue provided fromthe plurality of the first price category lottery tickets and at least aportion of the revenue provided from the plurality of the second pricecategory lottery tickets; randomly selecting the winning lottery number;and providing an inter-shared distribution of the first knowndistribution if at least one of the lottery tickets in the plurality offirst price category lottery tickets has a winning number and if atleast one of the lottery tickets in the plurality of second pricecategory lottery tickets has a winning number, wherein each of thewinning tickets in the plurality of the second price category lotterytickets shares the first known distribution with each of the winningtickets in the plurality of the first price category lottery ticketsaccording to an inter-sharing distribution formula.
 20. The method ofclaim 19, further comprising providing a divided first price categoryintra-shared distribution of the first known distribution, wherein eachof the winning tickets in the plurality of first price category lotterytickets shares the first known distribution according to the dividedfirst price category intra-sharing distribution formula.
 21. The methodof claim 19, further comprising providing a divided second pricecategory intra-shared distribution of the second known distribution,wherein each of the winning tickets in the plurality of second pricecategory lottery tickets shares the second known distribution accordingto the divided second price category intra-sharing distribution formula.22. The method of claim 19, wherein the first known distribution alsoincludes at least a portion of the revenue provided from the pluralityof the first price category lottery tickets and at least a portion ofthe revenue provided from the plurality of the second price categorylottery tickets.
 23. The method of claim 19, wherein the second knowndistribution is larger than the first known distribution.
 24. The methodof claim 19, wherein the inter-sharing formula is a weighteddistribution that provides a larger portion of the first knowndistribution to winning tickets in the plurality of the second pricecategory lottery tickets.
 25. The method of claim 19, further comprisingproviding a guarantee of payment of the first known distribution. 26.The method of claim 19, further comprising providing a guarantee ofpayment of the second known distribution.
 27. The method of claim 19,further comprising receiving a guarantee of payment of the first knowndistribution.
 28. The method of claim 19, further comprising receiving aguarantee of payment of the second known distribution.
 29. A methodcomprising: providing a first price category in which a plurality offirst price category lottery tickets can be purchased, wherein the firstprice category indicates a first known prize that can be won withlottery tickets in the plurality of first price category lottery ticketshaving a winning lottery number; providing a second price category inwhich a plurality of second price category lottery tickets can bepurchased, wherein the second price category ticket indicates a secondknown prize, distinct from the first known prize, that can be won withlottery tickets in the plurality of second price category lotterytickets having the winning number, wherein the second known prizeincludes at least a portion of the revenue provided from the pluralityof the first price category lottery tickets and at least a portion ofthe revenue provided from the plurality of the second price categorylottery tickets; randomly selecting the winning lottery number;providing a first price category intra-shared distribution of the firstknown prize if at least one of the lottery tickets in the plurality offirst price category lottery tickets has a winning number, wherein thefirst price category is the only price category having a winning ticket,wherein each of the winning tickets in the plurality of first pricecategory lottery tickets shares the first known prize according to afirst price category intra-sharing distribution formula; providing asecond price category intra-shared distribution of the second knownprize if at least one of the lottery tickets in the plurality of secondprice category lottery tickets has a winning number, wherein the secondprice category is the only price category having a winning ticket,wherein each of the winning tickets in the plurality of second pricecategory lottery tickets shares the second known prize according to asecond price category intra-sharing distribution formula; and providinga divided first price category intra-shared distribution of the firstknown prize, a divided second price category intra-shared distributionof the second known prize, and an inter-shared distribution of the firstknown prize if at least one of the lottery tickets in the plurality offirst price category lottery tickets has a winning number and if atleast one of the lottery tickets in the plurality of second pricecategory lottery tickets has a winning number, wherein each of thewinning tickets in the plurality of first price category lottery ticketsshares the first known prize according to the divided first pricecategory intra-sharing distribution formula, wherein each of the winningtickets in the plurality of second price category lottery tickets sharesthe second known prize according to the divided second price categoryintra-sharing distribution formula, wherein each of the winning ticketsin the plurality of the second price category lottery tickets shares thefirst known prize with each of the winning tickets in the plurality ofthe first price category lottery tickets according to an inter-sharingdistribution formula.
 30. The method of claim 29, wherein the firstknown prize also includes at least a portion of the revenue providedfrom the plurality of the first price category lottery tickets and atleast a portion of the revenue provided from the plurality of the secondprice category lottery tickets.
 31. The method of claim 29, wherein thesecond known prize is larger than the first known prize.
 32. The methodof claim 29, wherein the inter-sharing formula is a weighteddistribution that provides a larger portion of the first known prize towinning tickets in the plurality of the second price category lotterytickets.
 33. The method of claim 29, further comprising providing aguarantee of payment of the first known prize.
 34. The method of claim29, further comprising providing a guarantee of payment of the secondknown prize.
 35. The method of claim 29, further comprising receiving aguarantee of payment of the first known prize.
 36. The method of claim29, further comprising receiving a guarantee of payment of the secondknown prize.
 37. A method comprising: providing a first price categoryin which a plurality of first price category lottery tickets can bepurchased, wherein the first price category indicates a first knownprize that can be won with lottery tickets in the plurality of firstprice category lottery tickets having a winning lottery number;providing a second price category in which a plurality of second pricecategory lottery tickets can be purchased, wherein the second pricecategory ticket indicates a second known prize, distinct from the firstknown prize, that can be won with lottery tickets in the plurality ofsecond price category lottery tickets having the winning number, whereinthe second known prize includes at least a portion of the revenueprovided from the plurality of the first price category lottery ticketsand at least a portion of the revenue provided from the plurality of thesecond price category lottery tickets; randomly selecting the winninglottery number; providing a first price category intra-shareddistribution of the first known prize if at least one of the lotterytickets in the plurality of first price category lottery tickets has awinning number, wherein the first price category is the only pricecategory having a winning ticket, wherein each of the winning tickets inthe plurality of first price category lottery tickets shares the firstknown prize according to a first price category intra-sharingdistribution formula; and providing a second price category intra-shareddistribution of the second known prize if at least one of the lotterytickets in the plurality of second price category lottery tickets has awinning number, wherein the second price category is the only pricecategory having a winning ticket, wherein each of the winning tickets inthe plurality of second price category lottery tickets shares the secondknown prize according to a second price category intra-sharingdistribution formula.
 38. The method of claim 37, wherein the firstknown prize also includes at least a portion of the revenue providedfrom the plurality of the first price category lottery tickets and atleast a portion of the revenue provided from the plurality of the secondprice category lottery tickets.
 39. The method of claim 37, wherein thesecond known prize is larger than the first known prize.
 40. The methodof claim 37, further comprising providing a guarantee of payment of thefirst known prize.
 41. The method of claim 37, further comprisingproviding a guarantee of payment of the second known prize.
 42. Themethod of claim 37, further comprising receiving a guarantee of paymentof the first known prize.
 43. The method of claim 37, further comprisingreceiving a guarantee of payment of the second known prize.
 44. Themethod of claim 37, further comprising providing an inter-shareddistribution of the first known prize if at least one of the lotterytickets in the plurality of first price category lottery tickets has awinning number and if at least one of the lottery tickets in theplurality of second price category lottery tickets has a winning number,wherein each of the winning tickets in the plurality of the second pricecategory lottery tickets shares the first known prize with each of thewinning tickets in the plurality of the first price category lotterytickets according to an inter-sharing distribution formula.
 45. Themethod of claim 44, further comprising providing a divided first pricecategory intra-shared distribution of the first known prize, whereineach of the winning tickets in the plurality of first price categorylottery tickets shares the first known prize according to the dividedfirst price category intra-sharing distribution formula.
 46. The methodof claim 44, further comprising providing a divided second pricecategory intra-shared distribution of the second known prize, whereineach of the winning tickets in the plurality of second price categorylottery tickets shares the second known prize according to the dividedsecond price category intra-sharing distribution formula.
 47. A methodcomprising: providing a first price category in which a plurality offirst price category lottery tickets can be purchased, wherein the firstprice category indicates a first known prize that can be won withlottery tickets in the plurality of first price category lottery ticketshaving a winning lottery number; providing a second price category inwhich a plurality of second price category lottery tickets can bepurchased, wherein the second price category ticket indicates a secondknown prize, distinct from the first known prize, that can be won withlottery tickets in the plurality of second price category lotterytickets having the winning number, wherein the second known prizeincludes at least a portion of the revenue provided from the pluralityof the first price category lottery tickets and at least a portion ofthe revenue provided from the plurality of the second price categorylottery tickets; randomly selecting the winning lottery number; andproviding an inter-shared distribution of the first known prize if atleast one of the lottery tickets in the plurality of first pricecategory lottery tickets has a winning number and if at least one of thelottery tickets in the plurality of second price category lotterytickets has a winning number, wherein each of the winning tickets in theplurality of the second price category lottery tickets shares the firstknown prize with each of the winning tickets in the plurality of thefirst price category lottery tickets according to an inter-sharingdistribution formula.
 48. The method of claim 47, further comprisingproviding a divided first price category intra-shared distribution ofthe first known prize, wherein each of the winning tickets in theplurality of first price category lottery tickets shares the first knownprize according to the divided first price category intra-sharingdistribution formula.
 49. The method of claim 47, further comprisingproviding a divided second price category intra-shared distribution ofthe second known prize, wherein each of the winning tickets in theplurality of second price category lottery tickets shares the secondknown prize according to the divided second price category intra-sharingdistribution formula.
 50. The method of claim 47, wherein the firstknown prize also includes at least a portion of the revenue providedfrom the plurality of the first price category lottery tickets and atleast a portion of the revenue provided from the plurality of the secondprice category lottery tickets.
 51. The method of claim 47, wherein thesecond known prize is larger than the first known prize.
 52. The methodof claim 47, wherein the inter-sharing formula is a weighteddistribution that provides a larger portion of the first known prize towinning tickets in the plurality of the second price category lotterytickets.
 53. The method of claim 47, further comprising providing aguarantee of payment of the first known prize.
 54. The method of claim47, further comprising providing a guarantee of payment of the secondknown prize.
 55. The method of claim 47, further comprising receiving aguarantee of payment of the first known prize.
 56. The method of claim47, further comprising receiving a guarantee of payment of the secondknown prize.